THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has praised Beyond Blue for supporting the mental health of small business owners.

Beyond Blue has today released a free online guide that provides business advisers, such as accountants, bookkeepers and industry association representatives, with practical tips about how to support their clients and members.

“I commend Beyond Blue for taking a holistic approach to supporting our small business community,” Ms Carnell said.

“Many small business owners may not be aware that the very worries that are keeping them up at night – be it cash flow, customer demands or paying suppliers – can actually cause high levels of psychological distress and have serious impacts on their mental and physical health.

“Their trusted advisers are in a good position to notice if their client is struggling to cope with these issues and to start that important conversation about their mental health," she said.

“The guide is easy to navigate and provides business advisers with the tools they need to support their clients, without formal training in counselling.

“We know it makes good business sense to invest in wellbeing. Research by Pricewaterhouse Coopers has shown that every dollar spent on creating a mentally health workplace results in a positive return on investment of 2.3.”

The guide is available for download at www.bb.org.au/supportingsmallbusiness

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CPA AUSTRALIA has welcomed and said it supports the Federal Government’s announcement of an extension to the transition period for registered financial advisers to meet the examination and education requirements of the new standards.

CPA Australia’s public practice manager Keddie Waller said, “While we are supportive of the principles of these reforms, it is important to balance their impact against maintaining the ongoing availability, quality and affordability of advice, as stated by the government.

"The additional one year granted by the government to complete the Financial Advisors Standards and Ethics Authority (FASEA) exam and the additional two years granted to meet the FASEA qualification requirements will help smooth the transition for financial advisers,” Ms Waller said.

“We note, however, that there are elements, such as recognition of prior learning, that are still being finalised by FASEA.

“CPA Australia will continue to work closely with the government and FASEA to help smooth the transition for our members, as there are further opportunities for improvement.”

www.cpaaustralia.com.au

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THE Financial Planning Association of Australia (FPA) has welcomed the Federal Government’s announcement that it will give existing financial planners more time to pass the Financial Adviser Standards and Ethics Authority (FASEA) exam and comply with the FASEA education standard.

Senator Jane Hume, Assistant Minister for Superannuation, Financial Services and Financial Technology, announced today that the Federal Government will restore the full two-year period to pass the exam by extending the deadline for 12 months to 1 January 2022. The government will also extend the deadline for meeting the FASEA education standard by 24 months to 1 January 2026.

Dante De Gori, CEO of the FPA, said the government’s decision to announce their intention to extend the original deadline means existing financial planners are no longer being unfairly disadvantaged by delays from FASEA in rolling-out its exam and its new code of ethics.

“The government has done the right thing by proposing to extend the deadlines for all existing financial planners to sit and pass the FASEA exam and meet the education standard," Mr De Gori said.

“The proposed new deadlines will give existing financial planners more time to study, ensuring that these reforms are successful at raising the bar across the profession.

“We’re pleased that Minister Hume has listened to the feedback from our members and been willing to work with the FPA and AFA jointly to deliver a better outcome for all financial planners and their clients.”

BP AND DAVID JONES are partnering to create all-new centres of convenience and "shape the way Australian consumers shop for food".

The partnership combines David Jones Food’s exclusive, high-quality product range with BP’s global expertise in convenience retailing and national footprint, giving customers access to locally-sourced, ready-made meals and other fresh, quality offers at selected BP sites.

The new range will see more than 350 products on offer, including food-for-now and food-for-later options, as well as a diverse range of fresh items such as sandwiches, sushi and David Jones Food’s top-selling free-range rotisserie chicken, plus pre-prepared meals and long-life groceries.

Over the next six months 10 sites, strategically positioned around major arterials and key suburban regions of Melbourne and Sydney, will be transformed to showcase the new offer that has been designed with busy, urban, health-conscious customers in mind.

Brooke Miller, BP Australia vice president sales and marketing said BP was thrilled to be partnering with David Jones; the two companies share a passion for customer excellence and are equally driven to deliver best-in-class, high-quality convenience offers.  

“The traditional service station offer of today will not fulfil the retail customer needs of tomorrow.

BP’s vision is to transform convenience retailing in Australia, and enhancing our brand via strategic partnerships underpins our strategy to deliver market-leading fuels, technology, rewards and convenience offers to Australian consumers,” Miller said.

“The new stores will invite customers to explore the future possibilities of retail convenience in Australia. Drawing on the very best of each partner, the contemporary design will be ideal for our customers to shop the fresh, vibrant David Jones Food range or enjoy BP’s Wild Bean café.

“Multiple shopping missions will be catered for and BP’s high-quality offers won’t change; premium fuels will be available on the forecourt, the core range of drinks, snacks and café items will remain, and customers in a rush will be able to use the BPme app or a self-serve kiosk to beat the queue,” she said.  

Pieter de Wet, managing director David Jones Food, said: “The launch of this partnership marks an exciting new chapter for David Jones Food. Consumer behaviour is changing and demand for fresh, food-for-now and food-for-later options continues to grow. Customers expect convenience and quality to go hand in hand, and our collaboration with BP enables us to share the David Jones Food offering with more customers than ever before.

“This product range combines innovation with freshness and taste to deliver an offering that is both convenient and of the highest quality. We are committed to the ongoing development of the range and together with BP see an opportunity to deliver an experience that fits with the busy lives and changing needs and preferences of our customers.”

The partnership reflects the evolution of convenience retailing and global urbanisation trends. Household sizes are getting smaller and the notion of three seated meals a day and an hour of grocery shopping on the weekend no longer holds for many busy Australians. Customers are eating on the go more frequently and planning their meals in advance less and less.

With Australians doing their grocery shopping via multiple smaller shops, small-format convenience stores are playing an increasingly important role. In fact, studies show 48 per cent of consumers* visit petrol and convenience stores for eating, drinking or snacking options between meals.

Insights garnered from the initial 10 sites will inform the next phase of development for the partnership, with BP and David Jones to expand the offer to additional sites within BP’s national retail network.

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THE House of Representatives Standing Committee on the Environment and Energy is holding its first public hearing on the prerequisites for nuclear energy in Australia.

Chair of the Committee Ted O’Brien MP said he is looking forward to hearing from experts in the field.

"This inquiry needs to answer three basic questions about nuclear energy,” Mr O’Brien said. “Is nuclear energy feasible, suitable and palatable?

“To be feasible, it would have to stack up on economic, technological and capability grounds. To be suitable, it would have to make sense on environmental, safety and security grounds.

“And to be palatable, there would have to be an appetite among the Australian people. It’s time to hear from the experts.”

First public hearing
Date: Thursday, 29 August 2019
Time: 9am to 12:15pm
Location: Portside Conference Centre, 207 Kent St, Sydney

9am: Dr Ziggy Switkowski AO
10am: Australian Nuclear Science and Technology Organisation; Australian Radiation Protection and Nuclear Safety Authority
11:15am: Australian Energy Market Operator; Australian Energy Market Commission; Australian Energy Regulator
12:15pm: Close

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

The Committee intends to hold public hearings at various locations, which will be announced in due course on the inquiry website: https://www.aph.gov.au/nuclearpower. Submissions close on 16 September 2019.  

Further information about the inquiry, including how to lodge a submission and terms of reference, can be found at https://www.aph.gov.au/nuclearpower or contact the Secretariat on (02) 6277 4580 or at This email address is being protected from spambots. You need JavaScript enabled to view it..

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“THE NEED to fast-track the rollout of infrastructure projects has grown more urgent following the June quarter slump in engineering construction activity to be at its lowest level in a decade,” according to Shane Garrett, Master Builders Australia's chief economist. 

"Although the volume of engineering construction activity across the country only fell by 1.1 percent in the June quarter, it means the sector has now fallen to its lowest ebb since 2008,” he said. 

“Even though we supposed to be on the cusp of an infrastructure boom, engineering construction activity has not been this weak since the GFC. It’s a clear sign that governments are not moving fast enough to advance infrastructure commitments to the construction phase,” Mr Garrett said. 

“This will require all levels of government to urgently implement reforms to draw on the capacity of smaller and local construction contractors and also measures to ensure there is the necessary skilled workforce. 

“Today’s figures show that the other components of construction are also struggling. The downturn in residential building activity continued with another 5.1 percent reduction during the June 2019 quarter. This was eclipsed by the 6.6 percent drop in commercial building work done over the same period,” Mr Garrett said. 

“As the economy’s largest provider of full-time jobs, the new figures show that the building and construction industry is in real need of a lift. The quickest way to achieve this is by governments working together to get the infrastructure projects happening. 

“Our recently-released Master Builders forecasts indicate that engineering construction work is likely to be a crucial lifeline for our industry over the next few years, given that both residential and commercial building are expected to struggle,” Mr Garrett said. 

“A visible expansion in the amount of construction projects taking place would lift morale in the industry and show everyone that our economy is on the up again

During the June 2019 quarter, Western Australia was the only state to see an increase in construction activity (+1.4%). The largest reduction in construction work affected the ACT (-13.1%), followed by the Northern Territory (-12.3%) and Queensland (-6.0%). There were also declines in South Australia (-4.8%), Victoria (-4.4%), Tasmania (-4.1%) and New South Wales (-1.9%). 

www.masterbuilders.com.au

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THE Queensland Resources Council (QRC) has welcomed the release of the State Government’s North West Queensland Economic Diversification Strategy, and said it was important to strengthen the resources sector and ensure it continues to develop alongside other key industries.

QRC chief executive Ian Macfarlane said the resources sector would continue to be the main economic driver of the region, but all sectors would benefit through a plan to grow the region and encourage more investment.

“North West Queensland is a resources heartland,” Mr Macfarlane said.

“The resources sector supports almost 10,000 jobs and makes up $1.7 billion, or more than a third, of the region’s economy.

“It is already delivering for our state and it is also one of the most prospective regions of Queensland for new exploration, new investment and new jobs.

“The North West Minerals Province is rich in potential for critical minerals that are the building blocks of just about every part of our lives, including rare earths.

“The Geological Survey of Queensland has an estimated $40 billion dollars of geological information and explorers are combing through these rock libraries for clues to where the next deposit of new energy minerals might be found.

“Queensland has a world class reputation in metallurgy and minerals processing, which stands us in good stead for refining and recovering these new energy minerals.

“They will also be in growing demand on global markets, so it is important that Queensland seizes the opportunities for ongoing resources investment in the North West.

“It is important that investments in energy infrastructure, including supply and transmission, provide opportunities for common user projects, which was identified as a priority in the Strategic Blueprint for Queensland’s North West Minerals Province.

“Expanding energy opportunities in the North West will not only power the resources sector for example in mineral processing, but it will provide the reliable electricity needed to support other industries in the region including agriculture, and support the development of towns and communities.

“QRC has also welcomed the Palaszczuk Government’s commitment earlier this year to upgrading the Townsville to Mount Isa rail line and reducing rail charges.

“The opportunities for resources development in the North West could help secure Queensland’s role as a resources superpower for decades into the future.

“We are calling on both the State and Federal Governments to continue to provide incentives for exploration and development, such as the $100 million Exploring for the Future program from the Australian Government.

“Investment in common use infrastructure, exploration and supporting industries can all help deliver on the full potential in the North West.”

NEW FIGURES released by the Australian Taxation Office (ATO) today estimate that almost 90 percent of income tax from small businesses is paid voluntarily or with little intervention from the ATO.

“This shows that the vast majority of small businesses in the tax system are trying to do the right thing,” Deputy Commissioner Deborah Jenkins said.

“Small businesses make up more than 99 percent of all Australian businesses. They contribute $380 billion to the economy each year and employ around five million people," Ms Jenkins said.

“Considering how much small businesses have on their plate, we’re grateful for the level of work they put in to get their tax right.”

The ATO estimates the 2015-16 income tax gap for the small business sector to be approximately 12.5 percent, or $11.1 billion, with over $7 billion (or over 64% of the total value of the gap) being attributed to black economy behaviour.

Small business tax gaps that have been released overseas range from 9-30 percent.

Around 90 percent of small businesses use a registered tax professional to help them comply with their income tax obligations. 

“We recognise the important role that tax professionals have in helping small businesses get their tax right and we would not have been able to achieve this result without the support of our tax professionals," Ms Jenkins said.

“In addition to seeking qualified advice from a registered tax professional, we know that small businesses who keep good records and have invested in record keeping software are more likely to get their tax right.

“We’ve found that some small businesses are making mistakes with their tax, but these are often unintentional errors which are easily fixed.  Our objective is to support these honest small businesses to better understand their obligations and to help them get it right the first time.”

The ATO has a research program that measures tax performance across all market segments. This work helps measure the effectiveness of the tax system.

As part of this program, the ATO measures tax gaps – estimates of the difference between the tax collected and the amount that would have been collected if everyone was fully compliant with the law.

“Internationally, tax gaps are difficult to compare, but what’s clear is we are performing well in terms of small business compliance, and that is something worth celebrating.”

The ATO’s research shows a small percentage of businesses are deliberately avoiding their tax obligations, but by dollar value this adds up to a significant portion of the gap. This behaviour could be motivated by a desire to avoid tax, limit impacts on welfare payments, or to avoid law enforcement. 

“Hiding income, exaggerating expenses and operating outside the system are all considered to be black economy behaviours. Businesses doing the wrong thing are about to attract our full attention,” Ms Jenkins said. 

The Black Economy Taskforce estimates that the black economy costs community as much as $50 billion, approximately 3 percent of Gross Domestic Product (GDP). 

“Small business operators that engage in black economy behaviour are not competing on a level playing field. They have an unfair advantage over those doing the right thing,” Ms Jenkins said.

“We’re implementing a number of initiatives to tackle the black economy. Changes like a ban on sales suppression software and a new tip off line where people can report suspected black economy behaviour to us.”

The ATO is also expanding their sophisticated data analytical tool that spots red flags indicating omitted income or other black economy conduct.

“We’ve stepped up our enforcement activities, including highly visible mobile strike teams. We visited close to 10,000 businesses around the country last year and we plan to visit another 30,000 over the next three years.”

The ATO provides free, educational resources, guidance materials and online tools and services on its website. The ATO also works with tax professionals and provides them with tools to educate and inform their small business clients to ensure they can meet their tax obligations.

EXTRA INFORMATION

Tax gap estimates are an important feature of the performance and accountability story of any modern tax authority. (Find out more at ato.gov.au/taxgap.)

The ATO has previously released the net income tax gap for large corporates, estimated at 4.4 percent or $1.8 billion in 2015-16, and the net income tax gap for individuals not-in-business for 2014-15, is estimated at 6.4 percent, or $8.7 billion.

To measure the 2015-16 income tax gap for small business, we use findings from our random enquiry program to estimate the difference between what we expected to collect, and what was actually collected for the given year.

Initially, the ATO undertakes a detailed profile of the tax affairs for each taxpayer in the sample, which helps to identify all tax risks or issues for each taxpayer.

The ATO makes use of all information provided by the taxpayer as well as data collected by the ATO, for example, interest and dividend payments, and public domain data.

Where we find issues, we, escalate to an audit. The audit results contribute to the calculation of the tax gap.

This method is considered highly credible, and is commonly used in other tax jurisdictions for tax gap estimation in similar situations. 

The small business income tax gap estimate provides a better understanding of compliance in this segment. This information helps the ATO better tailor our products, support and strategies to mitigate these risks, and improve the experience for taxpayers.

More information about the small business tax gap including how we calculated it is available through the ATO website at ato.gov.au/SmallBizTaxGap.

Tax gap estimates are an important feature of the performance and accountability story of any modern tax authority. Find out more at ato.gov.au/TaxGap. 

About the Black Economy Taskforce

The Black Economy Taskforce was established to provide a whole-of-government approach to combat the black economy in Australia. It was established in December 2016 to develop a policy framework involving new proposals to tackle black economy activity. The Black Economy Taskforce's Final Report was released in October 2017.

The ATO plays a significant role in leading and delivering on the Black Economy Taskforce recommendations accepted by the Government. Since 1 July 2018, the ATO has coordinated an extensive program of work to tackle the black economy. This program of work includes a multi-faceted approach.

The ATO is responsible for addressing the following aspects of the black economy:

• deliberate under-reporting income and over-claiming expenses
• ensuring businesses meet their employer obligations – so they don’t pay employees or contractors cash in hand, underpay wages, fail to withhold tax or not contribute to super
• addressing illegal phoenixing (together with Phoenix Taskforce partner agencies) – deliberately liquidating and reforming businesses to avoid obligations
• preventing tax fraud
• dealing with illicit tobacco, duty and excise evasion
• targeting intermediaries and agents who enable black economy behaviour

www.ato.gov.au

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