THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has commended the NSW Government for its new pilot program that will see some small business subcontractors get paid in 20 business days.

The pilot program, which runs until June, signals the NSW Government’s commitment to faster payment times down the supply chain.  It follows the introduction of the NSW Faster Payments Policy in 2018, which ensures small businesses directly contracted by the NSW Government are paid in five business days.

“This trial, which extends the existing faster payments policy to ensure larger companies with NSW government contracts pay their suppliers in 20 business days is very encouraging,” Ms Carnell said.

“Fast-tracking payments to small businesses is the best way to help them recover after what has been an incredibly tough 12 months.

“This initiative will benefit small business suppliers and will also flow through to the broader economy," she said.

“We know that small businesses, particularly those hardest hit by the COVID crisis, urgently need cash flow.

“The latest CreditorWatch data shows businesses are being paid on average 26 days overdue, which is absolutely devastating for them and highlights the importance of paying small businesses on time.

“The NSW Government’s faster payment program for small business suppliers should be considered the benchmark for governments at all levels. If NSW can do it, there is no reason why it can’t apply across the board," Ms Carnell said.

“Big businesses should also be doing the right thing by their small business suppliers by paying on time and ensuring they are complying with the Payment Times Reporting Scheme which came into effect on 1 January, 2021.” 

www.asbfeo.gov.au

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By Rod Taubman >>

FOR LARGE ORGANISATIONS, reliable enterprise resource planning (ERP) systems are an essential part of conducting business efficiently.

ERP software lets companies organise, analyse and report on data drawn from a single, centralised source. This facilitates easy access for all departments from human resources, financial management, customer management and inventory and supply chain information from one location.

It’s crucial for business leaders to have access to relevant information when needed, especially if the company operates across different cities and countries, which makes it more challenging to gather and consolidate accurate information in real time.

Centralising systems helps to maintain consistency across operations, regardless of location. However, with increasing numbers of the Australian workforce now operating remotely, ERP systems are becoming even more important to businesses of all sizes.

As organisations continue to transition towards remote working models, investing in cloud-based software for different operational needs is becoming increasingly important. Cloud-based software empowers employees to continue working and collaborating as seamlessly as they would in a central location, which is imperative to achieving business continuity and success in the new working world. 

For many organisations, investing in cloud-based ERP systems will help streamline efficiencies, reduce costs across the business and ensure business resilience into the future.

ECONOMICS ADD UP

Business executives are continuing to look closely at the bottom line in the current economic environment.

Ongoing business disruption amid the pandemic has put pressure on managers to keep costs low and workforce productivity high. Investing in cloud-based ERP systems, among other cloud technologies, presents an ideal opportunity for managers to meet this requirement.

Legacy hardware and software solutions can involve excessive maintenance costs. These costs can grow with more users operating remotely, as businesses need to upgrade licensing to install products across new devices and invest in more robust security measures to keep all systems secure and operational while employees work from home.

This can also pose challenges for IT teams when it comes to managing and maintaining systems, as it can be difficult to upgrade systems efficiently without direct access to devices.

However, by investing in cloud-based systems, business teams can begin to reduce these excessive costs.

Depending on organisational requirements, cloud-based systems offer increased scalability compared to legacy systems, typically involving different licensing plans that can flex to suit changing business needs.

As different devices are added to an organisation’s network for users working from home, IT teams can remotely install the right systems and the relevant supporting systems and security processes. These systems can also be updated and upgraded with ease.

UPGRADES MADE EASY

Cloud-based ERP systems don’t require onerous, on-premises upgrades and new versions or changes are automatically applied, which ensures the company software is always up to date. Without cumbersome installation or updating processes involved, this can also reduce both the time and cost involved in maintaining ERP systems.

As well as providing increased scalability, cloud-based ERP systems facilitate improved accessibility and flexibility across the remote workforce. Cloud-based ERP systems can be customised to meet specific company needs, which can empower users to make better business decisions based on more relevant, accurate and often real-time data.

By investing in cloud-based systems for ERP, companies can access a higher quality system for every department, which will positively impact on collaboration both internally and across the entire supply chain.

With increased accessibility, all departments can capture the same data whenever and wherever they need it, which can lead to more efficient conversations and updates for suppliers, customers and partners. This, in turn, can lead to more efficient working practices and increased productivity, positively impacting the bottom line.

TRIGGER MORE AUTOMATION

Newer technologies, including cloud-based ERP systems, typically offer organisations more opportunities for automation. Integrating more automation into ERP is essential for businesses, particularly in times of economic uncertainty and business disruption.

By integrating systems in the cloud for enhanced accessibility and collaboration across remote workforces and departments, cloud-based ERP systems rely less on outdated spreadsheets and manual processes, instead opting for more automation within the systems.

By centralising data and information, teams no longer need to manually update and share information with other departments across the business. Manual processes create opportunities for errors, which can affect decision-making accuracy and be costly for the business. Instead, teams can access the same data at the same time, which can break down communication silos between departments.

In addition, cloud-based ERP systems can integrate automation to streamline internal processes. By automating smaller repetitive tasks, like updating data, businesses can free up human employees to spend more time on more complex and higher priority tasks to provide a better level of service for customers.

Investing in ERP systems can be costly; however, transitioning towards cloud-based ERP systems can be a more cost-effective strategy in the long term, making it a more affordable choice for businesses of all sizes.

By investing in a more scalable and accessible solution, organisations can receive a most robust return on the ERP investment.

www.acclimation.com/au/

The author, Rod Taubman, is the managing director of Acclimation, a Melbourne-based, privately owned software and services consulting firm founded in 2008 with offices in Sydney, Adelaide, Brisbane, Hobart and Singapore.

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AUSTRALIA’s 31 billionaires have seen their fortunes increase by nearly $85 billion since the global COVID-19 pandemic was declared, Oxfam has revealed on the opening day of the World Economic Forum’s Davos Agenda meetings. 

Analysis shows that the staggering increase would be enough to give the 2.5 million poorest Australians a one-off payment of just over $33,300 each. Oxfam Australia Chief Executive Lyn Morgain said in the context of the country’s first recession in almost 30 years, this extreme inequality was particularly shocking. 

“As hundreds of thousands of people were losing their jobs and entering an incredibly unstable employment market, this small group of elite Australians saw their incomes recover very quickly, before beginning their upwards trajectory once more,” Ms Morgain said. 

Ms Morgain said the Federal Government’s cut this month to the JobSeeker payment, a critical lifeline for millions of Australians thrown into unemployment, was devastating. 

“While the Government should be congratulated for acting quickly to implement wage subsidies and other social protection measures last year, the inappropriate and unfair reversal of the increase to JobSeeker payments is a cruel blow to the poorest Australians and, according to unions, has left 1.4 million people living on as little as $51 a day,” Ms Morgain said. 

A global survey of 295 economists from 79 countries, commissioned by Oxfam, revealed that 87 percent of respondents expect an ‘increase’ or a ‘major increase’ in income inequality in their country as a result of the pandemic. 

The four Australian economists who took part in the survey agreed the coronavirus crisis would lead to an increase or major increase in income inequality. They said it would be the sharpest increase in inequality in at least 50 years, and that the widening gap would impact women and ethnic minorities most. All four experts believed Government didn’t have an adequate plan in place to address the issue. 

Ms Morgain said that inequality in Australia was highlighted when comparing the incomes of Australia’s 10 highest paid CEOs with healthcare workers, and registered nurses in particular. 

“We found that it would take a nurse 259 years to earn what a top Australian CEO earns, while a CEO could earn the annual salary of a nurse in 1.3 days,” Ms Morgain said.

“The critical nature of the work of all of our healthcare workers who continue to tackle this crisis, as well as how that work has been undervalued in the past, has rarely been more apparent in the Australian community as it is now. 

“This global emergency has truly laid bare the entrenched injustices of our current economic system, which only serves to deepen inequality, particularly in times of crisis.”  

Oxfam has launched its global report, The Inequality Virus, which highlights how the coronavirus crisis has exacerbated inequality and deepened poverty around the world. 

The report shows how the rigged economic system is enabling a super-rich elite to amass wealth in the middle of the worst recession since the Great Depression, while billions of people are struggling to make ends meet. It found:

• The 1,000 richest people on the planet recouped their COVID-19 losses within just nine months, while it could take more than a decade for the world’s poorest people to recover from the economic impacts of the pandemic.
• The world’s 10 richest men have seen their combined wealth increase by half a trillion dollars since the pandemic began — more than enough to pay for a COVID-19 vaccine for everyone and to ensure no one is pushed into poverty by the pandemic.
• At the same time, the pandemic has ushered in the worst job crisis in over 90 years, with hundreds of millions of people now underemployed or out of work.

 "We stand to witness the greatest rise in inequality since records began. The deep divide between the rich and poor is proving as deadly as the virus,” Ms Morgain said.

"Globally, women and marginalised racial and ethnic groups are bearing the brunt of this crisis. They are more likely to be pushed into poverty, more likely to go hungry and more likely to be excluded from healthcare.”

Ms Morgain said it was up to governments around the world to ensure communities emerge from the crisis with a better chance of surviving the next one.

“Extreme inequality is not inevitable, but a policy choice. The Australian Government must seize this opportunity to build a more equal, more inclusive, and greener economy that ends poverty and protects the planet,” she said.

“The fight against inequality and poverty must be at the heart of economic recovery efforts. Our government must invest in public services and low carbon sectors to create millions of new jobs and ensure everyone has access to a sustainable social welfare safety net, and they must ensure the richest individuals and corporations contribute their fair share of tax to pay for it.

“These measures will help us build a better and more hopeful future that is fairer for all Australians.”

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has called on the Federal Government to implement the recommendations in her Insurance Inquiry, saying too many small businesses are being forced to close their doors because they can’t get public liability insurance.

Ms Carnell said the government needs to take urgent action to ensure small businesses can access essential insurance products such as public liability.

“Throughout the course of our inquiry, hundreds of small businesses told my office they face closure if insurance remains unavailable to them,” Ms Carnell said.

“Small businesses have told us they have either been denied insurance outright or their premiums have as much as tripled in a few years, effectively pricing them out of the market.

“One heartbreaking example of this is Barra Fun Park in Townsville, which is sadly closing its doors this Sunday after 20 years of operation.

“Owner Brent Stevenson cannot find an insurer willing to renew his public liability insurance.

“In the two decades Barra Fun Park has been operating, there has only been one insurance claim against his business. The claim resulted in a $70,000 payout to a patron who sustained an injury (hyper-extended thumb) at the park. Brent subsequently saw his insurance premium nearly triple and paid the annual fee, only to be shut down for six months due to COVID restrictions," Ms Carnell said.

“This is not just one isolated incident – we know there are many small businesses, particularly those offering recreational activities such as caravan parks with splash zones and jumping pillows, that are in the same boat.

“That’s why our Insurance Inquiry has made recommendations addressing the lack of availability of public liability insurance, which is in large part attributable to the unlimited nature of injury claims and the potential for large damages to be awarded.

“Our report recommends Australia follow the lead of New Zealand, which has applied statutory caps on liability for personal injury. We need a civil liability framework that actually works," he said.

“The government should also implement the Productivity Commission’s recommendation to roll out a no-fault National Injury Insurance Scheme (NIIS) to cover lifetime care for catastrophic injuries. It’s been nine years since the Productivity Commission released its Report into Disability Care and Support and yet the NIIS is still under consideration, much to the detriment of the small business sector.

“Ultimately, the risk environment for public liability litigation can only change through government intervention and the current framework of fault-based injury compensation creates uncontrollable risks for insurers and small businesses.”

www.asbfeo.gov.au

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