“THE ANNOUNCEMENT by the government to extend the temporary halving of the minimum superannuation drawdown amount is welcomed by retirees,” Association of Independent Retirees president Wayne Strandquist said today. 

“In times of financial crisis or market volatility that we have seen with the GFC or the COVID-19 pandemic, retirees need greater flexibility in the minimum amount they are required to draw down from their superannuation," he said.

“If retirees are forced to withdraw money from superannuation when the capital value of superannuation accounts are depressed or when the returns being generated are low, it will have long term impacts on how long their superannuation will last,” Mr Strandquist said.

“The 50 percent reduction in the minimum age based drawdown percentages for superannuation income streams for the past two years was welcomed by retirees, as is the extension of the temporary reduction for a third year 2021-22.

“The Association of Independent Retirees has advocated for some years to government that the minimum withdrawal percentages from superannuation in retirement should be permanently lowered for retirees who are 75 years and older.

“The time spent in retirement is now considerably longer than when the compulsory superannuation system was established. In addition to this longevity risk, investment risk also increases over time with more periods of volatility in the value of retirement savings and retirement income,” Mr Strandquist said.

“So, rather than a temporary arrangement, retirees need a permanent reduction to minimum super drawdowns so they have the flexibility to deal with whatever comes along as well as preserving funds for out of pocket health and age care expenses in later life."

www.independentretirees.com

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THE PRESSURE on small and medium sized enterprises (SMEs) from economic decline due to COVID-19 is felt by 35 percent of SMEs, down 20 percentage points compared to this time last year, however past pressures are creeping back to pre-pandemic levels with some increasing 6 percent in the past six months, according to the new MYOB Business Monitor. 

The latest research of more than 1,000 Australian SME owners and operators found top business concerns to be cashflow and the cost of utilities, felt by 32 percent of respondents. The greatest increases include access to finance, a pressure for 26 percent of respondents up from 20 percent in December, and late payments from customers increased to 29 percent from 25 percent. 

As some businesses return to normality, traditional business concerns are creeping back in, according to Emma Fawcett, MYOB’s general manager SME.

“It’s an unfortunate return to ‘business as usual’ for the country’s 2.29 million SMEs with 14 of the 16 business pressures measured by the MYOB Business Monitor increasing in the last six months," Ms Fawcett said. "This demonstrates that as COVID-19 pressure subsides other business pressures increase. 

“SME concerns with payment times and old bugbears associated with physical presence – such as utilities like electricity and gas – are back on the table. It seems these issues were temporarily superseded during the pandemic but are increasingly back on the radar now for many SMEs.”

Business confidence

The research, conducted before Victoria’s latest lockdown, found overall business owners were feeling positive about the year ahead, with 57 percent predicting an uplift in Australia’s economy and almost half (48%) predicting their revenue will be up a year’s time.

The latest Business Monitor shows a marked difference in confidence for the coming year by industry, with 78 percent of finance and insurance SMEs predicting the economy will improve in the next 12 months, compared with a national average of 57 percent. Retail and hospitality are at the other end of the spectrum with only 46 percent predicting uplift.

Queensland SMEs are the most confident with 60 percent predicting an improvement in the economy in the year ahead, followed by Victorians, at 59 percent when the survey was conducted prior to the latest lockdown. In New South Wales 58 percent believed the economy would improve as did 55 percent of Western Australian SMEs. 

Nationally 30 percent report an increase in revenue on a year ago, up from 19 percent in December. The likelihood of a revenue increase in 12 months time is up 11 points to 48 percent compared with 37 percent at the end of last year.

Business priorities

In the next 12 months SMEs are looking to increase the prices and margins on what they sell (30%), retaining customers (29%), as well as customer acquisition, employee payments and marketing/advertising online (all 28%).

“After a challenging trading year, it’s encouraging to see SMEs looking to explore new revenue opportunities over the next 12 months,” Ms Fawcett said.

“It’s concerning those operational pressures are on the rise as the country recovers from COVID-19, however an overall confidence in the economy as well as SME revenue, is a good sign for a sector that makes up 95 percent of Australian businesses.”

About MYOB

MYOB is a business platform with a purpose of helping more businesses in Australia and New Zealand start, survive and succeed. MYOB delivers end-to-end business management tools and accounting solutions for SMEs and the mid-market, direct to businesses, as well as a network of accountants, bookkeepers and consultants. MYOB operates across four key segments: small and medium enterprises (SME), enterprise, financial services and practice.  myob.com  @MYOB on Twitter.

About MYOB Business Monitor

The MYOB Business Monitor researches business performance and attitudes regarding areas such as profitability, cash flow, pipeline work, technology usage and the government.  This report presents the summary findings for key indicators from the MYOB Business Monitor comprising a national sample of 1,005 business owners, managers and directors (operators), conducted from March 17 to April 22, 2021. The businesses participating in the online survey were both non-employing and employing businesses. All data has been weighted by industry type, location and number of employees, which are in line with the Australian Bureau of Statistics (ABS - Counts of Australian businesses, including entries and exits - 8165.0).  

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ON TUESDAY, June8, the Northern Australia Committee will hear from representatives of the Cape York Land Council, AECOM, Torres Shire Council and Gur A Baradharaw Kod Torres Strait Sea and Land Council Torres Strait Islander Corporation (GBK).

The inquiry into the destruction of Indigenous heritage sites at Juukan Gorge will further examine Aboriginal and Torres Strait Islander heritage legislation in Queensland, with a public hearing by videoconference.

The Committee will delve into cultural heritage problems experienced in Queensland by both Aboriginal and Torres Strait Islander peoples.

Committee Chair Warren Entsch said, "Cultural heritage protection is the primary objective of the Committee. By discussing issues with those affected we can ensure that the Committee’s report will include the voices of stakeholders from across Australia."

A key issue for the Cape York Land Council is that politicians and bureaucrats should not be making decisions relating to heritage protection and management.

An important issue for AECOM is that authorised Indigenous parties must be treated as crucial partners by governments and proponents in decision making processes for heritage management.

GBK wants land users to recognise and appreciate that the relationship between Aboriginal and Torres Strait People and their environment is one based on balance in harmony with nature and observance of their ancestral customs.

A program for the public hearing is available on the Committee’s website.

Public hearing details

Date: Tuesday, 8 June 2021
Time: 10am to 4pm AEST
Location: by video/teleconference

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

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THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson has today launched a Review of the Discretionary Mutual Fund proposed for small businesses in the amusement, leisure and recreation sector unable to secure essential insurance coverage.

Mr Billson said the self-generated review would build on ASBFEO’s Insurance Inquiry as well as ongoing feedback from the Australian Amusement, Leisure and Recreation Association (AALARA) on behalf of its members – many of which face imminent closure without adequate insurance coverage.

“Our country shows that we all love so much are facing a bleak future because small businesses, such as ride-operators, cannot get insurance coverage,” Mr Billson said.

“Closure of these small businesses will mean significant job losses and hurt local economies.

“Our review will be a deep dive into the inaccessibility of insurance for amusement, leisure and recreation businesses, so that we can provide further advice to the Australian Government on what measures could help these small businesses secure the insurance products needed to remain in operation.

“At the core of this review, my office will independently examine AALARA’s proposal to establish an industry-owned and operated Discretionary Mutual Fund as the most effective and durable solution to the sector’s insurance crisis," Mr Billson said.

“We will consider if this proposal will resolve the insurance issues in the sector, the responsibilities and obligations it would impose, its adequacy in satisfying regulatory requirements as well as other options that may assist these businesses.

“This review will use the Ombudsman’s internal expertise and seek external expert advice on complex issues, such as specialist legal, financial sustainability and actuarial matters.”

AALARA president Shane McGrath welcomed ASBFEO’s Review of its proposed Discretionary Mutual Fund, which it is seeking to establish in partnership with Aon.

“The amusement, attractions, leisure and recreation industries are facing catastrophic consequences without necessary insurance coverage,” Mr McGrath said.

“ASBFEO’s review will provide vital information to the Australian Government about the challenges our members are up against regarding insurance accessibility, as well as what that means for these businesses and what support could help address insurance issues faced by the sector," he said.  

A final report is expected to be completed in August.

www.asbfeo.gov.au

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