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Business News Releases

Professor Graeme Samuel to appear before House Economics Committee

THE CHAIR of the Australian Prudential Regulation Authority (APRA) Capability Review Panel, Professor Graeme Samuel AC, will appear before the House Economics Committee at a public hearing on Wednesday, September 11, 2019, as part of the committee’s review of the performance and operation of Australia’s banking, insurance and superannuation regulator.

The Capability Review was commissioned by Treasurer Josh Frydenberg in response to the findings of the Hayne Royal Commission. The report of the Capability Review was released in July 2019 and the Panel made 24 recommendations, with 19 directed to APRA and five to the government.

Chair, Tim Wilson MP, said, "The Capability Review Panel identified APRA’s internal culture and regulatory approach needed improvement, and that it had to establish an additional focus on superannuation, while recognising that it was an impressive and forceful regulator in relation to traditional financial risks."

Mr Wilson said, "The hearing will allow the committee to question Professor Samuel on the panel’s assessment of APRA’s capability to deliver upon its statutory mandate and respond to an environment of growing complexity and emerging risks for APRA’s regulated sectors."

Public hearing details

Date: Wednesday, 11 September 2019
Time: 11.05am to 12.05pm
Location: Committee Room 2R1, Parliament House, Canberra

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

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Poor health a barrier to working for Newstart, disability pension recipients: study

PEOPLE receiving the Federal Government’s main unemployment and disability benefits are more likely to have multiple health conditions and to be hospitalised, according to major national study.

The report, released by Monash researchers, is the first national snapshot of the health, and the health service use, of people receiving Newstart and the disability support pension.

The study, led by Professor Alex Collie of the School of Public Health and Preventive Medicine, suggests that a focus on improving the health of these people could increase their ability to find and keep work.

Researchers analysed National Health Survey data of more than 9000 people, including 638 disability pension recipients and 442 Newstart recipients.

People receiving the Centrelink benefits were more likely than workers to have many problems, and more likely to have multiple problems and diseases. They were more likely to be hospitalised, were heavy users of healthcare services, and had higher rates of medication use.

The rate of mental health conditions was much higher among people receiving the benefits, with 69 percent of disability pensioners and 49 percent of Newstart recipients reporting psychological or behavioural problems, compared with 21 percent of workers.

“It’s hard to work when you’re sick. We found large disparities between the health of people receiving Centrelink benefits and wage earners,” Prof. Collie said.

“Some of the findings are quite concerning, particularly the high rates of mental health problems experienced by benefit recipients. We also found that disability pensioners had more than double the rate of hospital admissions compared to wage earners. People on Newstart were three times more likely to report having at least 10 health conditions.

“Our study suggests that efforts to improve health in these groups should be a priority for government. Improving health can help people find and keep work.”

The CEO of the Australian Federation of Disability Organisations, Ross Joyce, said, “This study gives us new insight into the health of people with disability who receive income support through the DSP and Newstart, some of whom are the most vulnerable people in our community.”

“Over the past decade, successive governments have made it more difficult for people to apply for the DSP. We now have 200,000 people with disability who have been taken off the Disability Support Pension and placed on Newstart, many of whom have had their obligations under Newstart waived because of their disability.

“AFDO believes this traps people with disability into poverty and results in poor health outcomes.  We need to urgently address the health of these people and provide them with targeted access to health services,” Mr Joyce said.

The Monash research team is also launching a study that aims to understand the experiences of people on the DSP and their interactions with Centrelink.

“One thing we know is that bureaucratic processes can be bad for health, particularly mental health,” Prof. Collie said.

“Our new study aims to explore the links between people’s interactions with Centrelink and their health.”

People applying for the DSP, or receiving the DSP, can take part in the study by visiting www.dspstudy.com

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Small businesses to benefit from national energy check program

SPEAKING at the recent launch of the Business Energy Advice Program, the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell commended the introduction of free advice to help small businesses with 20 or less employees choose the best-priced energy options to suit their needs.

“These small businesses make up more than 97 percent of businesses in Australia and when it comes to energy consumption, they really feel the pain,” Ms Carnell said.

“Small businesses pay higher rates than households and use more energy, particularly manufacturers and the hospitality industry.

“They are less confident in finding the right information because what is out there is so complex, and they really don’t have the time and resources to investigate all alternatives.

“We know small business owners are experiencing high levels of stress and anxiety about energy bills, with 68% reporting these bills affect their cash flow," Ms Carnell said.

“A recent SME survey showed 70 percent would reduce investment in capital expenditure due to higher energy prices.

“The new Business Energy Advice Program offers an energy check benchmarking tool and a personalised energy advice service.

“Instead of trying to absorb energy price rises, which 85 percent of small businesses have said they would struggle to do, they will be able to shop around for a better deal.

“I encourage all small businesses to get onto the Business Energy Advice website to check their energy spend and find out how they can save money.”

www.asbfeo.gov.au

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Queensland Government’s regional commitment questioned without support for New Hope mine

THE Queensland Resources Council (QRC) said Queenslanders would have every right to question the Palaszczuk Government’s commitment to the regions without a decision to keep 150 workers at New Hope’s Acland mine near Oakey in their jobs.

QRC chief executive Ian Macfarlane said while the Parliament would begin its regional sittings in Townsville today, a long shadow was cast over the fellow mining communities of Oakey and Toowoomba by the drawn-out saga over approvals for the New Hope Stage Three expansion.

“Today Parliament begins sitting in the state’s north.  We welcome that commitment to one of our most important resources regions. 

“But Queenslanders have every right to ask just how seriously the Palaszczuk Government takes that regional commitment as workers near Oakey are now confronting real-life redundancies because of a drawn-out approvals process that has pushed the limits of credibility,” Mr Macfarlane said.

“The future of 150 workers at the Acland mine is up in the air because of outstanding approvals for the next phase of the mine and an associated water licence. The approvals process has been running for 12 years.

“At the recent Labor Party conference, Premier Annastacia Palaszczuk said ‘coal, gas and renewable industries…all these jobs are good decent jobs.’

“The Premier can’t expect miners in Central and North Queensland to accept her word that this Government supports coal mining when their colleagues at Acland are left out of a job because the Government won’t make a decision on New Hope Stage Three,” Mr Macfarlane said.

“We hope to see the pro-mining rhetoric turn into a reality by ending the uncertainty for workers at the New Hope Acland mine.   The mine can be expanded while still complying with environmental sustainability requirements.

“Relocating the Parliament to the regions is an important symbolic gesture.  Backing our resources jobs from the state’s north all the way to the south is an even more important concrete action the Government can take to prove it backs regional Queensland.

“It’s time to end the decade long uncertainty for workers at the New Hope mine and support our resources sector to keep delivering for our state.”

www.qrc.org.au

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Ombudsman urges prospective franchisees to do their homework

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell is urging prospective franchisees to do their homework before investing, after the ACCC found some franchisors were failing to provide adequate information to buyers.

The regulator found one-in-three franchisors in the food services sector had failed to disclose useful contact details of former franchisees to allow prospective buyers to conduct due diligence.

“It’s vitally important that potential franchisees know what they are getting into before signing off on a franchise agreement,” Ms Carnell said.

“Part of that due diligence process when considering buying a franchise is speaking to previous franchisees. If the franchisor is making it difficult to contact former franchisees, that’s definitely a red flag.

“The ACCC also found a third of the franchisors failed to disclose key ongoing costs such as wages, rent and inventory," she said.

“The cost of setting up a food service franchise can run into hundreds of thousands of dollars, so it makes good business sense to seek independent legal and business advice before making that significant investment.

“My office has received more than 50 complaints in the June quarter from franchisees in strife, highlighting the need for greater awareness in this space," Ms Carnell said.

“We encourage anyone who has been affected by these practices or who is involved in a franchising dispute to contact ASBFEO.”

Further information is available at https://www.asbfeo.gov.au/industrycodes/franchisingcode

The ACCC also has helpful resources: Buying a franchise? Know the risks

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Resources sector completes safety reset

THE Queensland Resources Council (QRC) has welcomed the release of official figures that show 96 percent of workers in Queensland’s resources and quarry sectors have completed safety resets.

QRC chief executive Ian Macfarlane said the resources industry has been fully engaged in the reset process, underscoring the sector’s commitment to safety for all workers.

“Safety is the number one priority in the resources sector. It’s not just words, it’s the reality for everyone who works in or with our sector,” Mr Macfarlane said.

“From day one when the reset was first proposed at a meeting with industry, government and unions, resources companies have made this their top priority.

“Although the circumstances that have led up to the reset are tragic, the reset process has had a positive impact on the safety settings for the sector in the long-term.

“Each safety reset was implemented according to site-specific circumstances and specific fatal risks," Mr Macfarlane said.

“I have had feedback about resets that show they have strengthened the two-way communication between workers and management. There have also been occasions where the resets have identified external issues that could improve safety, for example upgrading roads near mine sites.\

“The resources sector always strives to implement the best practices and best technologies to maximise site safety. Every measure we put in place to enhance safety is time well spent.

“Thank you to all our member companies who have participated in this reset and given it their full resources and attention," he said.

“Extenuating circumstances relating to shift logistics and individual cases of worker leave mean we expect the small number of workers who are still participating in the reset to complete the process in the coming weeks.

“QRC supports the two independent reviews commissioned by the Queensland Government, which are due to report back by the end of the year.”

The reviews will focus on why mine and quarry workers have died over the past 20 years; how industry can improve and how the mines inspectorate can work better and review the state’s mining health and safety legislation.

www.qrc.org.au

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Slow growth shows need for accelerated infrastructure construction and more business investment

"AUSTRALIA'S economic growth rate remains stuck at a decade low but the government has what’s needed to get it moving again,” according to Denita Wawn, CEO of Master Builders Australia. 

“What’s urgently needed is an acceleration of infrastructure projects to the construction phase and more discussion of measures to encourage business investment.  We need investment in new plant, equipment and other assets need to be sharpened so that the appetite for growth and expansion returns,” Ms Wawn said.

“This morning’s GDP figures show that Australia’s economy grew by 0.5 percent during the June 2019 quarter equivalent to a 1.4 percent annual growth rate – the lowest since September 2009.

“Many components of domestic demand have shrunk over the past year – including key elements like business investment in addition to both residential and commercial building. Even though household spending has grown it has done so at the weakest pace in years,” Ms Wawn said. 

“We back the government’s transport infrastructure agenda and the announcement by the Federal and Victorian Governments today of $367.5 million for Melbourne’s Monash Freeway is good news, but today’s figures also show that the volume of engineering construction actually dropped by some 14.8% over the past year.

“Announcements won’t kick-start economic growth. That’s why governments need to streamline planning and approvals processes and harness the capacity of smaller construction contractors.

“In addition to commitments in Melbourne and Sydney there is great opportunity to unlock growth by targeting projects to other major cities, towns and regions and the government’s new skilled migration visa measures would help support that ambition. Master Builders has made a submission to Infrastructure Australia with a proposed package of projects that fits this criteria,” Ms Wawn said. 

“Our industry provides the most full time jobs and has the most small businesses of any sector but we need growth to continue being a major driver of economic activity. That’s why we also want to see more discussion around other policy measures to encourage business investment. 

 “The key thing is to get the work happening as quickly as possible on this and other previously announced infrastructure projects. So far, the official data show that the infrastructure wave has yet to make an impression on the ground,” Ms Wawn said.

www.masterbuilders.com.au

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Ombudsman seeks feedback on Business Funding Guide

THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell is seeking feedback on the ground-breaking Business Funding Guide.

The guide, released in July by ASBFEO in partnership with Scottish Pacific Business Finance, is an industry-first publication primarily written for accountants, bookkeepers, brokers and other financial advisers, to help their small business clients find the right funding and get ‘finance fit’ to increase their likelihood of having funding applications approved.

Its companion guide – FitsME- Essential Guide to Business Funding gives small business operators the most important information they need to know about preparing to apply for finance.

“The overwhelming feedback from the small business community is that a lack of access to funding is their biggest barrier to growth,” Ms Carnell said.

“The Australian Banking Association (ABA) has even acknowledged that small business loan applications have fallen by 33 percent since 2014.”

While ASBFEO and Scottish Pacific consulted widely with adviser associations and other key stakeholders representing the small business sector to produce the first edition of the guide, feedback is now being sought to finalise the guide.

“We welcome feedback on the content and usefulness of the guide from all interested parties," Ms Carnell said.

“At the moment this is a living document that can be amended and improved based on the feedback we get, with a final version of the guide to be available later this year.

“Importantly, this guide is designed to help small businesses become ‘finance fit’ to give them their best chance at securing the funding they need.

“Our Business Funding Guide offers comprehensive information on the range of financial products on the market – it’s crucial small business understands that the big four banks are not the only game in town," she said.

“There are so many variables in running a small business, but the one constant is that SMEs need funds to grow,” Scottish Pacific CEO Peter Langham said.

“By incorporating broad feedback, the guide will be able to really engage businesses and their advisers about a wide range of bank and non-bank funding options and give them the tools to find the right one for them.”

Ms Carnell said while the guide covered a wide range of funding options, for those small business operators considering obtaining finance through a mainstream financial institution, the ABA is promoting its website financingyoursmallbusiness.com.au which is a helpful resource.

Provide Business Funding Guide feedback by emailing This email address is being protected from spambots. You need JavaScript enabled to view it. before the October 18 deadline.

www.asbfeo.gov.au

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Making agriculture a $100 billion industry

THE House Standing Committee on Agriculture and Water Resources will launch an inquiry into growing Australian agriculture to $100 billion by 2030.

Australia’s agricultural industries currently generate products valued at approximately $60 billion annually. The National Farmers’ Federation has suggested that with careful planning and investment this figure could grow to $100 billion by 2030.

Rick Wilson MP, chair of the Agriculture and Water Resources Committee, stated that "the global demand for food is projected to grow 54 percent by 2050. Australian agriculture is well placed to make a significant contribution to supplying this growing demand and in the process increase its value and profitability".

"Whether it be improving market access, investing in marketing, or embracing innovative technologies that increase the efficiency, sustainability, and productivity of our farms, the Committee is interested in all the opportunities available to drive growth in Australian agricultural businesses in the coming decades," Mr Wilson said.

The Committee is accepting submissions to the inquiry until Monday, 14 October 2019. For further information on making a submission please visit the inquiry website.

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US experts to present at major productivity conference

THE Institute of Public Accountants (IPA) has engaged senior adviser to the Office of International Trade at the US Small Business Administration (SBA), Eugene Cornelius, Jr to present and co-facilitate a major conference focusing on Australia’s flagging productivity on September 4 and 5 at Deakin University Downtown in Melbourne.

Mr Cornelius was responsible for the establishment of the SBA’s Office of International Trade and previously, as deputy associate administrator of that Office, overseeing four program divisions: Federal State and Trade; International Trade Finance; International Affairs & Trade Policy; and Administration & Operations.

In addition to his SBA role, Mr Cornelius has accepted a one-year detail with the International Council for Small Business (ICSB), with headquarters in Washington DC.

Mr Cornelius will be joined by fellow American, Dr Winslow Sargeant.  Dr Sargeant is ICSB’s President Elect and Managing Director of S&T.  Previously, he was the Chief Counsel for Advocacy appointed by and reporting direct to President Barack Obama.  Dr Sargeant was also a managing director at a Madison, Winsconsin-based capital firm, Venture Investor LLC.

Mr Cornelius and Dr Sargeant will form part of a large line-up of talented presenters at the Small Business: Big Vision event being run by the IPA Deakin SME Research Centre on 4 and 5 September 2019.  Keynote speakers include the Hon Michael Sukkar MP, Minister for Housing and Assistant Treasurer, and Ms Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman.

Other international speakers include: Prof Charles Matthews, University of Cincinnati; 2017-18 Fulbright US Scholar, USA; and Ms Diah Yusuf, entrepreneur, business consultant, Vice President ICSB, Indonesia.

Details of the program can be found at:  www.publicaccountants.org.au/events/smallbusinessbigvision

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Ombudsman backs mental health support for small business owners

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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