AUSTRALIA's largest accounting body, CPA Australia has released tips for small businesses facing the possibility of significant disruption from the likely spread of coronavirus or COVID-19.

CPA Australia spokesperson Paul Drum said COVID-19 will be a shock to many businesses that could place their immediate future in serious jeopardy, and there is no way of knowing how long this pending crisis will last.

“For many businesses, likely moves by governments to contain the public health risk may result in a sudden fall in demand for products and services, labour shortages and supply disruptions," Mr Drum said.

“Businesses must assume that health authorities will ask people to stay home to contain the spread of COVID-19, or that large numbers of people will voluntarily stay home. This will result in people consuming less and purchasing in different ways. It will also impact staff availability, especially for businesses where employees cannot work from home.

“As part of a comprehensive risk management strategy there are a range of actions small businesses should consider taking now to prepare them for COVID-19, to place them in the best possible position to navigate through the crisis and prepare to take advantage of the recovery,” Mr Drum said.

Small businesses should consider the following advice:

• Keep up to date with official information on COVID-19 and any directions public health authorities may issue
• Update your financial statements
• List possible impacts on your business of COVID-19, estimate the financial impact and develop mitigation strategies
• Perform a financial health check on your business
• Re-do your budgets with new assumptions
• Act now to improve cash flow
• Increase online sales
• Put in place a contingency plan
• Talk to key suppliers
• Identify employees with critical skills for your business and make sure they can continue working or can be replaced
• Do a reality check on your business
• If you find yourself in financial difficulty, seek professional advice early.

The full list of CPA Australia’s tips, including additional detailed information can be found here:

https://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/training/detailed-tips-for-small-business-on-covid-19.pdf

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AUSTRALIAN Made Campaign partner, Oz-Town, is hosting an Australian Pavilion at this year's China International Import Expo (CIIE) and is inviting Australian manufacturers to register their interest.

Branded with the iconic Australian Made logo, the Oz-Town Australian Pavilion aims to provide an effective platform for Aussie exporters to showcase their genuine Australian products and connect with buyers, retailers and distributors.

Hosted by the Ministry of Commerce for the People's Republic of China and the Shanghai Municipal People's Government, CIIE is an annual Chinese trade fair and the world's first import-themed national-level expo. This year it will be held in Shanghai China from November 5-10, 2020. 

With the support of the Australian Made Campaign (AMCL), Oz-Town plans to establish an Australian Pavilion with areas dedicated to Food & Agriculture, Lifestyle and Health & Medical.

Oz-Town will arrange for several China-based business partners to attend the Australian Pavilion, while also hosting several 'business matching' events to connect exhibitors with buyers and retailers.

In 2019, more than 80 China-based businesses (buyers/retailers) visited the Oz-Town Australian Pavilion. Oz-Town also arranged several 'business matching' events, resulting in US$100m worth of sales contracts.

This opportunity is suitable for exporters of Australian products looking to break into or grow their market share in China.

An Oz-Town CIIE webinar will be held on on March 18 at bit.ly/AustralianPavilion.

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REDUCING workforce disincentives facing professional, university educated women could add up to 12 million working hours to the economy annually -- the equivalent of an extra 6,500 highly talented women in the Australian workforce.

A report prepared by the Australian Institute of Project Management (AIPM), to coincide with International Women’s Day, identified eight imperatives for improving gender equity in senior industry levels.

It found that reforming federal government childcare policy would encourage many female executives to stay in the workforce full-time after starting a family – boosting gender equity and the GDP.

The reform is crucial, said  AIPM CEO Elizabeth Foley, because six in 10 Australians still work in industries that are dominated by one gender.

“AIPM’s membership comes predominantly from project-based organisations in male dominated industry groups, such as mining, construction, manufacturing, information, media and technical services,” she said..

“Women represent just 22 percent of our members. This reflects the male dominance of project management-based industries, and doesn’t reflect the available female skills and talent out there.”

Ms Foley said childcare reforms introduced in 2018 by the Federal Government presented significant disincentives to women from professional backgrounds returning to work after having children.

“Under the current settings, if combined family income exceeds the set upper limits by just one dollar, the amount provided by the Child Care Subsidy Scheme plunges by at least half and in some circumstances by more than half,” she said.

“These built-in financial cliffs really exacerbate the work disincentives facing younger working mothers, dissuading them from working more than three days a week.

“And that’s a real pity, because it’s only by working full time that they can properly achieve career mastery.”

The AIPM’s report identifies changes required to bring gender equity to the workplace.

As well as childcare reform, they include building a work culture that values women, closing gender-defined gaps in pay and superannuation, and breaking down the gender dominance (both male and female) that characterise many industries.

“In Australia, only 25 percent of the ASX-listed executive leadership team are women,” Ms Foley said.

“At that level, the gender pay gap averages 21.3 percent – meaning women are being paid almost $26,000 less each year than men filling identical roles and carrying identical responsibilities.”

https://www.aipm.com.au/resources/reports/gender-equity-in-the-workplace

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A FEDERAL Parliament inquiry into regional Australia is starting its investigations by touring and meeting with regional business and community members in Tasmania.

House of Representatives Select Committee on Regional Australia Chair Tony Pasin saidTassie was the perfect place to start an inquiry into the regions.

"We want to hear about what works, and what doesn’t," Mr Pasin said.

"We will be visiting local success stories in the Launceston and Hobart areas, including innovative economic development group Bell Bay Advanced Manufacturing Zone and startup hub Enterprize.

"In Hobart, we will explore the 'MONA effect' and hear about how regional areas can benefit from tourism dollars – and the challenges such a shift can create," he said.

Roundtable discussions on Regional Business and Regional Community will be held in Launceston, and a roundtable discussion on Regional Tourism will be held in Hobart.

Community members are encouraged to attend and speak to the Committee as part of the roundtable discussions, and can contact the secretariat for more information.

Information on the Committee’s work, including submissions and public hearing programs, may be found on the Committee’s webpage.

Regional Business Roundtable

Date: Wednesday, 11 March 2020
Time: 10.30am to 11.45am
Location: George Town Library Hub, 12 Elizabeth St, George Town

Regional Community Roundtable

Date: Wednesday, 11 March 2020
Time: 2.30pm to 3.30pm
Location: Macquarie House, 92 Cameron St, Launceston

Regional Tourism Roundtable

Date: Thursday, 12 March 2020
Time: 1pm to 3pm
Location: Eros Room, Museum of Old and New Art, 655 Main Rd, Berriedale

The roundtable discussions will be broadcast live at aph.gov.au/live.

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WITH INSOLVENCIES at an all-time high, and the continued risk of constructing high-rise unit blocks, it is essential developers focus on the ‘missing’ middle ring, employ a sustainable business model and address imbalances in the property market, according to RiskWise Property Research CEO Doron Peleg.

This has never been more important, he said, as figures show building approvals, especially in Sydney, are on the increase.

According to the latest figures from the HIA, building approvals in November reached their highest level since March 2019, up by 11.8 percent due, predominantly, to a surge in NSW.

Figures show, in seasonally adjusted terms, building approvals for the month of November 2019 increased in NSW (+52.8 per cent), South Australia (+3.8 per cent) and Queensland (+1.0 per cent).

However, RiskWise’s Mr Peleg said an increase in approvals did not necessary bode well for the property market as indicated by the record number of developer insolvencies.

ASIC reports the number of construction businesses that went into external administration rose from 371 in the September quarter of 2018 to 514 in 2019. Meanwhile, over the 2018-19 financial year, 556 construction companies went under, 101 more than the previous financial year.

In addition, 169 NSW-based construction companies went into administration, receivership or a court-ordered shutdown in the June quarter which was the highest number since the September quarter in 2015.

According to CreditorWatch, the construction sector also topped the list for recovery court actions Australia-wide and in NSW, court actions for recovery in the third quarter of 2019 were 35 percent higher than the comparable quarter of 2018.

Mr Peleg said there had already been numerous cases of lots approved for development and subsequently sold at a loss, especially in light of the construction defect reports.

“And if you are losing 20 percent, you are lucky. We are really talking about millions of dollars,” he said.

“The point is developers are at risk of insolvencies and this means they need to mitigate this risk by ensuring they have a sustainable business model, focus on the ‘missing’ middle ring and address imbalances in the property market.

“Focusing on the missing middle is by far more of a solution than taking the risk of off-the-plan high-rise development.”

Mr Peleg said population growth, job creation, improving economies and good infrastructure that Sydney and Melbourne were experiencing would draw people to these cities and, therefore, increase demand for property, with population forecasters expecting both to hit the eight million mark by 2050.

In addition, he said in the current environment of already high prices it would be more difficult for owner-occupiers to compete with property investors, especially given the current environment of low interest rates and low out-of-pocket expenses. 

“We expect to see investors increase their activity in the market as it is currently well below peak and this will put further pressure on dwelling prices and housing affordability,” he said.

“But it must be remembered that family suitable units in the middle rings are more attractive to owner-occupiers looking for larger floor space, lower price per square metre and smaller unit blocks. These are, effectively an alternative dwelling to houses, which are, in many areas, unaffordable.

“These imbalances in the market cannot be resolved without a strategic solution and co-ordinated plan by all levels of government.

“In the meantime, what it means for developers is they should be focused on developing the middle rings with family-suitable accommodation close to transport hubs and schools. There are actually many areas that have a great potential and carry a low risk, it is only a matter of business strategy and proper risk management practices.”

www.riskwiseproperty.com.au

TODAY, the Victorian Chamber of Commerce and Industry is launching a new initiative to help Victorian business survive under tough business conditions exacerbated by the bushfire and coronavirus crises.

The initiative, offered for the first time, will waive membership fees for one year for all Victorian businesses up to a value of $700. Existing members will receive an additional $500 credit.

The Victorian Chamber has developed the initiative in response to business concerns, with many members reporting they may have to close their doors after being hit hard by the impacts of bushfires and coronavirus.

"Waiving membership fees is not a decision we made lightly; we made this decision because business owners have told us they are struggling," Victorian Chamber chief executive Paul Guerra said. ". We want to make sure Victorian businesses have the best chance of success.

"Businesses need to be supported, with a well-trained workforce and plan for growth. This initiative helps businesses navigate all the pressures they are facing by giving them a support base that’s got their back," he said.

“The Victorian Chamber advocates on behalf of businesses, but when they are not doing so well, we need to help. Extraordinary times call for extraordinary actions and this is certainly something the Chamber has never done before.

“We’ve been the voice of Victorian business for 167 years and we listen to our members. They have told us what they need and we will address this by giving them access to practical help to steer them to success.”

The initiative is open to every Victorian business because we believe that Victorian business needs our help and we want to make sure every business, no matter its size, can access the expert services it needs to see a way back to profit.

As part of the year-long initiative, the Victorian Chamber will hold a series of roadshows in metropolitan and regional Victoria throughout the year where businesses will have an opportunity to discuss concerns, gain information on growing their profits and provide feedback and information on the issues they want the Chamber to raise with government policy makers.

Local, state and federal politicians will be invited to attend so that they can hear directly from business.

The Victorian Chamber initiative is supported by services offered pro bono from some of our members, who will be able to steer and advise businesses what they can do to keep their business afloat and work towards growth. Information on the services offered is available at victorianchamber.com.au.

To be attributed to :

“The Victorian Chamber advocates on behalf of businesses, but when they are not doing so well, we need to help. Extraordinary times call for extraordinary actions and this is certainly something the Chamber has never done before.

“We’ve been the voice of Victorian business for 167 years and we listen to our members. They have told us what they need and we will address this by giving them access to practical help to steer them to success.”

TODAY's ACCC report into private health insurers paints a disturbing picture of deceptive behaviour and declining affordability and value driving the industry’s current ‘death spiral’.

It also casts a shadow over today’s calls by the nation’s largest health insurers to remove current rules protecting patient access to the best and latest medical technology.

The ACCC report cites multiple examples where the big corporate insurers have tried to deny their customers access to essential medical treatments, while at the same raising patient premiums and out of pockets.

Thanks to the ACCC report, this alleged tendering ‘policy reform’ from private health insurers has therefore been today exposed as nothing but a front to put profits before patients.

The ACCC report is also further proof as to why it is not just unethical, but medically unsafe, for private health insurers to be given more power than doctors when it comes to making decisions in the best interest of patients.

The likes of Medibank, Bupa, NIB and HCF have already undermined consumer confidence in their own products through their 'smash and grab' approach to keeping their businesses afloat.

The Federal Government cannot afford for private health insurers to also now undermine patient confidence in their doctors.

This will not only spell an end to private health insurance as we know it, but irreparable damage Australia’s health system as a whole.

Key quotes from the ACCC report:

“The costs of private health insurance continued to be of concern to consumers.” (p1)

“In 2018  –19, private health insurance participation rates continued to decline, while average gap payments for in-hospital and extras treatment increased.” (p1)

“Cumulative premium increases have been higher than inflation and wage growth in the past five years, indicating that households with private health insurance are contributing an increasing proportion of their incomes to paying premiums. (p1)

“When gap payments have been incurred by consumers for hospital treatment, these increased on average by 1.9 percent, with an increase of almost 4 percent for extras treatment. (p5)

“The ACCC instituted proceedings in the Federal Court on 2 September 2019 against Medibank Private Limited trading as ‘ahm’ (Medibank), alleging that Medibank falsely represented to members holding ahm “lite” or “boost” policies, who were making claims or enquiries, that they were not entitled to cover for joint investigations or reconstruction procedures, when in fact their policies covered these procedures. (p21)

“The ACCC instituted proceedings in the Federal Court in May 2017 against NIB alleging it contravened the ACL by engaging in misleading or deceptive conduct, unconscionable conduct and making false or misleading representations. The proceedings arise from NIB’s alleged failure to notify members in advance of its decision to remove certain eye procedures from its ‘MediGap Scheme’ in 2015. Under the MediGap Scheme, members had previously been able to obtain these eye procedures without facing out-of-pocket costs when doctors participated in the scheme.” (p22)

“As noted in the ACCC’s 2017-18 Private health insurance report to the Australian Senate, the PHIO released a report into hospital policy changes announced by Bupa in February 2018, in which benefits would no longer be paid for a range of services previously covered under its basic and mid-level hospital policies. (p23)

www.accc.gov.au

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THE Queensland Resources Council (QRC) has raised concerns that proposed industrial manslaughter laws will have the reverse outcome of decreasing the safety culture in the mining industry. 

QRC chief executive Ian Macfarlane today told a Parliamentary Committee examining the proposed legislation that safety remains the sector’s top priority, but changes were needed to ensure the Bill met its purpose. 

“The resources industry has been a willing participant and partner in reforms to enhance mining safety, including through the safety roundtable last year, the subsequent safety reset and the Sean Brady safety review,” Mr Macfarlane said. 

“Safety is fundamental to the operation of resources sites, and a fundamental value that operators share with the regulator, workers and their representatives.   We are all working towards the same goal, an industry where every worker goes home unharmed at the end of every shift. 

“However, QRC believes the Bill as drafted could have the perverse outcome of decreasing safety culture and risking unintended consequences," Mr Macfarlane said.

“The current Coal Mining Health and Safety Act has been in operation for two decades and it was drafted in the wake of the Moura No. 2 Mine disaster that claimed 11 lives on the 7th of August 1994. 

“This legislation made landmark changes to safety laws for the resources industry.  These changes were not reflected in safety laws for other industries. 

“These safety laws governing the coal mining industry and protecting coal mining workers established the unique role, duties, responsibilities and obligations of statutory positions such as the site senior executive (SSE). The onus and the obligation for safety onsite rests upon those statutory office holders, including SSEs.

 “Under our current legislation SSEs who do not meet their obligations face the prospect of a fine or a custodial sentence," Mr Macfarlane said. “The Government’s stated intent to amend Work Health and Safety legislation by adding industrial manslaughter offences was to enable executive officers to be charged in the event of criminally negligent behaviour which had led to the fatality of a worker.  

“As the resource acts include statutory positions, it is not simply a matter of translating the industrial manslaughter provisions in the Work Health and Safety Act into the existing resources acts.  

“To do so causes a number of unintended consequences and risks reducing the likelihood that executive officers will ever be able to be charged as the industrial manslaughter offence is likely to disproportionately target the SSEs and other statutory positions.

“Rather than extending the prospect of a fine or jail time to those decision-makers beyond the mine site, the industry expects this Bill to load a heavier burden on site-based SSEs and the positions reporting to them, making their fundamental role untenable," he said.

“Recognising the onerous personal statutory duties that these positions already hold with associated penalties including the potential to be imprisoned for criminal manslaughter, QRC seeks the exclusion of statutory positions from the definition of Senior Officers.  

“The purpose in seeking this change is not to weaken the provisions, rather it is to enable the intent of the legislation to be achieved, that is, to ensure that corporate decision makers can be held personally liable for criminal acts of negligence causing death," Mr Macfarlane said.

“QRC believes that without these changes the Bill also runs the risk of diminishing safety by undermining the culture necessary to prioritise safety. The Brady report made it clear that the most important element of an effective safety culture is timely, comprehensive and honest incident reporting.

“The Bill as proposed creates a disincentive for workers to report these details.  While any mine death is tragic, the industry as a whole works together to learn quickly from any onsite incidents.

“This real-time safety sharing culture will be diminished by legislation that discourages anyone from openly sharing information for fear of prosecution," he said.

“The Bill also includes a late addition for which there has been no consultation or evidence provided. That issue is the proposal that all statutory officials in coal mining must be employed by the coal mine operator. 

“There is no evidence to suggest this requirement would have any impact on improving safety outcomes.  The Brady report made no findings that the reporting culture of contractor statutory position holders was inferior to the reporting culture of employees in those positions. 

“QRC and the resources industry remain committed to making improvements to mine safety and this requires full collaboration with other stakeholders on meaningful reforms.”

QRC’s submission.

www.qrc.org.au

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