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The key to liveability - committee meets

VICTORIA’s population growth leads the country, with Melbourne having a population of 4.5 million in a total of 6 million. The key to liveability in the face of such rapid growth is better connectivity and environmental and social sustainability.

With this in mind, the Committee on Infrastructure, Transport and Cities will visit Melbourne as part of its inquiry into the Australian Government’s role in the development of cities. The Committee will inspect a number of environmentally and socially sustainable developments and speak to industry experts, businesses and academics about how population increases can be accommodated without impacting liveability.

Committee Chair, John Alexander OAM MP, said the inquiry has a dual focus on enhancing and adapting existing capital and regional cities, as well as investigating the possible benefits of developing new regional centres.

“We are looking at how we can rebalance our population between major cities and regional areas,” said Mr Alexander.

“This may involve improving the infrastructure and connectivity of existing regional centres to entice people away from capital cities like Melbourne. Or it may be that developing brand new regional centres offers greater opportunity to accommodate a larger Australia in a sustainable manner.

“We’re examining opportunities for the Commonwealth Government to provide leadership in this area.”

Professor Peter Newton of Swinburne University suggested that population decentralisation is unlikely to succeed without better linkages between capital cities and regional centres.

“Traditional 20th century policies focussed on attempts to create new basic industries or relocate federal or state government offices will not succeed,” he submitted.

“Twenty-first century agglomeration economies favour large cities and will continue to do so until provincial cities become part of a functional mega-metropolitan region centres on a major capital city…”

Public hearing details: 9.00 am – 3.10 pm, Tuesday 29 August 2017, Room G3, Parliamentary Annex, Parliament of Victoria

9.00 am– 9.40 am: SGS Economics and Planning
9.40 am – 10.20 am: Centre for Urban Research RMIT
10.40 am – 11.10 am: Professor Peter Newton
11.10 am – 11.50 am: National Transport Commission
11.50 am – 12.30 pm: National Growth Areas Alliance
1.20 pm – 1.50 pm: Associate Professor Hussein Dia
1.50 pm – 2.30 pm: University of Melbourne
2.30 pm – 3.10 pm: City of Melbourne
3.10: Close

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

Further information on the inquiry, including the full terms of reference, is available on the Committee website.

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Banks challenged to become ethical leaders

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has challenged banks to become leaders in ethical business practice.

Speaking at the National Small Business Summit in Melbourne, Ms Carnell said trust in banks had been eroded and must be restored.

In her speech, Ms Carnell also:

  • Welcomed the big-four banks’ commitment to eliminate unfair terms from small business contracts; and
  • Encouraged the growth of alternative lending to improve access to capital.

Corporate regulator ASIC confirmed this week that banks have agreed to implement fairer contracts for small business customers that include important protections.

Banks will no longer be able to unilaterally vary contracts, and unfair clauses such as the banks’ power to default or terminate a loan for an unspecified negative change in circumstances, have been removed.

Ms Carnell said compliance with unfair contract terms legislation and improvements to the banking code of practice had been key recommendations from her 2016 small business loans inquiry.

“Banks can no longer use their market power and their hundreds of lawyers to move all risk to the small business borrower,” she said.

“A fair contract is one where risk is shared and it is clear who bears what risk, and neither party has the power to change that balance unilaterally.

“Historically the banks have required small businesses to sign contracts that have given them the power to change the fundamentals of contracts, interest rates, the amount lent and repayment times, without the agreement of the other party.

“The agreement that ASIC and ASBFEO have reached with the big four banks has changed that.”

Ms Carnell called on the major banks to demonstrate industry leadership in embracing best practice.

“Hopefully this will set the tone for the rest of the financial services sector and their support to small business,” she said.

Ms Carnell repeated her call for the contract safeguards to apply to small business total loan facilities up to $5 million. The legislation requires compliance up to $1 million and the big four banks have agreed to $3 million.

“We’ll be talking to the government, opposition, crossbench MPs and the banks about raising the threshold to $5 million, which is appropriate for capital intensive small businesses and family enterprises such as farms,” she said.

Ms Carnell also endorsed efforts to increase competition in the financial services sector.

“Peter Costello was right when he said on the weekend that access to capital is too restrictive for business and that Australian bank business lending is negligible,” she said.

“Banks are geared towards residential property, which inflates the housing market at the cost of stifling small business investment

“Unless a small business has adequate property as security they have very limited access to finance through traditional banks.

“On a positive note, the alternative finance sector is growing and the government has indicated it wants to reduce barriers to entry.”

 

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The AusMumpreneur Conference and Awards is underway in Sydney

SYDNEY - Yesterday, 160 women in small business attended the first day of the AusMumpreneur Conference at Sydney’s State Library.

The two-day workshop and conference finishes this afternoon and is followed by the AusMumpreneur Awards which will take place tonight at Doltone House, Sydney. More than 660 000 Australian small business owners are women and over 330,000 are mothers in small business.

Peace Mitchell said, “We are so excited for the awards tonight! It’s our biggest awards ever with over $200 000 in prizes and 275 people from all over Australia going to attend. It’s going to be spectacular.”
 
Yesterday, mumpreneurs attended workshops with Catherine Langman from Productpreneur Marketing, Louise Marshall from Reckon, Karen McDermott from Serenity Press, Candice Meisels, a PR expert specialising in start-ups and affordable PR, Helen Butler, a professional organiser and Katrina McCarter from Marketing to Mums.

While the workshops were running, finalists met with judges for a series of interviews which will determine the winners of the prestige AusMumpreneur Awards.

On Thursday afternoon, each AusMumpreneur of the Year finalist presented to the audience and judges. Each finalist then had to answer questions from the judges and the audience.

Today, delegates will listen to:

Amy Taylor-Kabbaz from Happy Mama, Karen Gee, Jacinta McDonnell, Urban Yoga and The Human Kind Project, Emeli Paulo, Collective Potential, Rhian Allen, Healthy Mummy, Monique Filer, b.box, Mrinalini Chakrabarty, Google and Peace Mitchell and Katy Garner, the co-founders of the AusMumpreneur Network.
 
Some interesting statistics:
 
The AusMumpreneur Network is the number one network for Mums in Business across Australia, according to the Federal Productivity Report 2015.
 
There are currently 660 000 women in business in Australia. 330 000 are mumpreneurs.

 
Start Up Smarter Report 2016

About 70 percent of startup founders are aged between 30-40 and the number of female founders are on the rise predicted to increase to 31 percent of founders in 2017 from just 16 percent in 2014. 

https://www.ausmumpreneur.com/


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ARA urges Senate to review the BOOT for retailers at today's hearing

THE Australian Retailers Association (ARA) will be appearing in front of the Senate Education and Employment Committee today to discuss improving Enterprise Bargaining Agreements (EBA) for retailers in Melbourne today.

The ARA have put forward a submission to the Committee regarding to the Senate’s Penalty Rates inquiring to improve the flexibility of EBA’s and rectify the Better-Off Overall Test (BOOT).

ARA Executive Director Russell Zimmerman said the ARA strongly recommends a review of the BOOT as its current function discourages enterprise bargaining and creates uncertainty during the agreement approval process.

“The BOOT was implemented to provide a simple, flexible and fair framework that enables collective bargaining for enterprise agreements that deliver productivity benefits,” Mr Zimmerman said.

“We are highly concerned that the BOOT is failing to achieve its objectives, and believe it is essential that Fair Work take a more practical approach to its application which is more focused on efficiency.”

The ARA believe the application of the BOOT by the Fair Work Commission (FWC) is a primary reason for the retail bargaining decline.

“Retail employers filing enterprise agreements approved by an overwhelming majority of their workforce are being met with a demanding FWC process,” Mr Zimmerman said.

“This process appears to be directed towards rejecting enterprise level arrangements rather than approving them although employees are clearly better off.”

As retailers are continually facing a fluctuating trading environment, the ARA believe the FWC needs to re-evaluate the unnecessary complications surrounding the BOOT.

To view the ARA’s full submission to the Senate Standing Committees on Education and Employment, please click here.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368.

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Small business loan protection threshold should be $5m

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has questioned Commonwealth Bank’s commitment to small business lending reform following evidence to a parliamentary select committee.

Ms Carnell said it was good that banks have finally committed to complying with unfair contract terms legislation, but the lending threshold should be $5 million instead of the $3 million they have agreed.

At the Select Committee on Lending to Primary Production Customers in Sydney on August 11, the Commonwealth Bank spokesman said:

"Certrtainly, insofar as the discussions we had with Ms Carnell, we had a debate and a discussion around that. We feel that $3 million is a lot of money. Beyond $3 million, it is starting to get into a very serious amount of exposure. We are very mindful that, obviously, as we lend more money, the risk to our organisation increases in absolute terms. The higher you push that threshold, one of the unintended consequences could be that the banks start to withdraw from the market. Why we feel $3 million is appropriate is that it tries to strike that right balance to achieve for the small business customers and provide greater certainty but also does not have the intended consequence of withdrawing liquidity from the small business market.”

Ms Carnell accused CBA of scaremongering.

“Despite repeatedly asking, we have never received a properly justified explanation of why $5 million is such a problem, even when they have acknowledged that this is a very small percentage of small business loans (above $3m),” she said.

“Threatening to withdraw liquidity from the small business market is a sledgehammer approach that’s farcical and has no justification given the low number of small business loans involved in going from $3m to $5m.”

Ms Carnell said the banks’ own independent expert adviser on the ABA Code of Banking Practice review, the Financial Ombudsman Service and the Government’s response to the Ramsay review on external dispute resolution had all identified a credit facility of at least $5 million as an appropriate threshold.

“By their evidence to the committee, CBA is suggesting that ethical values and best practice don’t apply above a reasonable limit, which is absurd,” she said.

“We’ll be talking to the government, opposition, crossbench MPs and the banks about raising the threshold to $5 million, which is appropriate for capital intensive small businesses and family enterprises such as farms.”

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Big Four banks agree to new small business contracts

CHANGES in bank contracts with small business people would boost the economy and be a feather in the ombudsman’s small business cap, according to the Council of Small Business Australia (COSBOA).

COSBOA today congratulated the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and her staff, as well as the Australian Bankers Association on a ground-breaking agreement for processing contracts and inclusions for small business people.

Peter Strong, CEO, COSBOA commented on the impact of these changes for small business people ahead of the Vodafone National Small Business Summit which takes place this week, 23-25 August in Melbourne.

“It’s taken longer than it should have done, but the big four banks have finally agreed to eliminate unfair terms from their contracts. Small business people are now safe from banks unilaterally changing loan contracts. Good on the banks," Mr Strong said.

“Unfair contracts legislation came into effect in November last year and banks were very slow to comply. But thanks to the work of Ombudsman Kate Carnell and her team, there are now important protections for small business customers,” said Mr Strong.

COSBOA notes that banks can no longer call in a default for an unspecified negative change in circumstances of a small business customer. In addition, banks are now able to vary contracts only in specific circumstances.

“These are basic rights that individual customers have had for a long time. It was unfair that small business people were at the mercy of decision from banks that were able to do whatever they wanted, whenever they wanted. The changes are a positive step for business and for the health of our economy,” added Mr Strong.

“The other big change is the new maximum threshold for the changes to take effect which is now $3 million, well up from the $300,000 set for other contracts. This is much more reflective of the real situation in the small business finance space, we do not want to appear greedy, we’d like it to be $5 million, but $3 million is a great leap forward.

“It is important that we acknowledge the work of the Australian Bankers Association who have supported changes in contract inclusions,” concluded Mr Strong.

Finally, it is worth noting the presence of an Ombudsman for small business people, along with the State Small Business Commissioners, has not had a negative impact on big business but indeed has had a positive impact on small business people and the economy. 

It is interesting that all the staff of the Ombudsman and commissioners understand small business as people and its wider importance to the economy. Not many agencies have that situation as there always seems to be some ideologue, or some 1990s laissez-faire economist in other government agencies who hold back progress and good regulation.

Kate Carnell, Australian Small Business and Family Enterprise Ombudsman; Judy O’Connell, Victorian Small Business Commissioner and Anna Bligh, CEO of Australian Banking Association will speak at the Vodafone National Small Business Summit, 23-25 August 2017 at the Events Centre Collins Square, Melbourne. 

Registrations are open for the Vodafone National Small Business Summit. For more information please visit: www.cosboansbs.com.au  

#NSBS17

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Payment times improve but more needs to be done

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed new data which shows that late payment performance is beginning to improve.

The latest Dun & Bradstreet report shows that late payments fell during the second quarter of 2017 by 4.6 percent, while prompt payments rose sharply.

On average, 63.8 percent of Australian businesses paid their bills on time.

However, just 12 per cent of ASX-listed companies pay on time compared with almost 34 percent of non-ASX-listed companies.

“This is very disappointing as public companies should be leading by example,” Ms Carnell said.

“It’s pleasing that some progress has been made since the ASBFEO inquiry into payment times and practices reported in March but more needs to be done.

“One of the biggest issues facing small business is delayed payments by big business and governments.

“Cash flow is king to small business; late payments can be the difference between success and insolvency.

“Overseas jurisdictions have demonstrated that faster payments through supply chains will free up cash flow and stimulate investment, jobs and growth.”

Ms Carnell said the Dun & Bradstreet report also reveals that Western Australia has the slowest payment times and the worst-performing sectors are wholesaling and manufacturing.

She said ASBFEO is developing a National Payment Transparency Register to publish businesses payment times and practices rated against a benchmark for good and bad performers.

The Business Council of Australia has established the Australian Supplier Payment Code – a voluntary, industry-led initiative.

For government payments, Ms Carnell said she would continue to push for 15-day payment terms.

“I’m encouraged the NSW Government has undertaken to investigate this,” she said.

View the Dun & Bradstreet report online.

 

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Court of Appeal dismisses activist’s claim

QUEENSLAND Resources Council (QRC) Chief Executive Ian Macfarlane said the opening of the vast rich coal deposits in the Galilee Basin edged forward today with another dismissal of an activist’s challenge in the Court of Appeal.

The proceedings were brought against Adani’s Carmichael coal mine project and the State Government from a member of the Wangan and Jagalingou people over the granting of Adani’s mining lease.

"It’s no surprise the court action was dismissed as it is just another in the long line of vexatious legal suits that hold back regional economies. Ten local government areas across central and northern Queensland are desperate for the economic investment this project will generate," Mr Macfarlane said.

"For every year, the Adani Carmichael coal mine project is delayed, Queensland misses out on $185 million in royalties, which would pay for 2,900 extra nurses or 3,350 extra police officers or 3,400 extra teachers. Exporting resources helps to fund essential services and they are a significant driver of growth, in 2015/16 the industry contributed $55.7 billion to the state’s economy.

"The appeal by Adrian Burragubba is merely a tactic of the anti-coal brigade and is straight out of the activists’ playbook. It’s all about disrupting and delaying new projects in the hope that the investor will give up and walk away and in so doing, denying regional Queensland thousands of desperately needed jobs.

"With coal prices strong, we need to get this project out of the courts and into construction."

www,qrc.org.au

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Is Telstra’s regional monopoly holding back small business growth?

ACCORDING to telecommunications and small business experts, ahead of the Vodafone National Small Business Summit in Melbourne this week, Telstra’s regional monopoly is holding small business growth back.

On the agenda at the Summit will be how domestic mobile roaming is Australia’s best opportunity to drive mobile coverage expansion in regional areas.

Currently, Telstra holds a taxpayer-funded mobile monopoly in vast areas of regional Australia. The Summit hosted by the Council of Small Business Australia (COSBOA) will support the right for regional businesses to have the same coverage enjoyed by their metropolitan counterparts.

The introduction of domestic mobile roaming would allow all Australians to use their mobile wherever coverage exists, regardless of their provider. This removes the need for multiple carriers to duplicate infrastructure in regional areas, so that carriers, governments and communities could co-invest in one expanded, shared set of infrastructure which delivers new coverage. 

Dan Lloyd, Chief Strategy Officer and Corporate Affairs Director, Vodafone will champion the call at the Summit to improve coverage, competition and choice in regional areas.

“Domestic roaming would be a game changer for small businesses in regional Australia, unlocking enormous opportunities for innovation, productivity and growth through improved mobile coverage and competition.

“Telstra’s regional mobile network is the network taxpayers built, with around $2 billion in government funding and subsidies given to Telstra since 2006. All small businesses in regional Australia should be able to benefit from taxpayers’ investment, instead of being stung with Telstra’s price premium,” said Mr Lloyd.

Domestic mobile roaming has proved successful in similar countries around the world.

“Mobile roaming has been effectively regulated in virtually every other western country with similar challenges of large land area and low population density – the USA, Canada, New Zealand, France, and Spain. It should be a no-brainer for Australia,” concluded Mr Lloyd.

Small business advocate, Peter Strong, CEO of Council of Small Business Australia (COSBOA) supports Mr Lloyd’s call for increased competition through domestic mobile roaming. 

“Small businesses across the country would benefit from increased competition in the rural telecommunications. Sector competition encourages product improvement and lower costs, both which rural small business people and consumers alike would welcome,” said Mr Strong.

Mr Lloyd will join senior politicians and industry leaders at Australia’s premier small business policy event to discuss key issues facing small business in Australia, including banking payments, cyber security, the digital economy, regulation red-tapeand more.

Key speakers include:

  • Bill Shorten MP, Leader of the Opposition
  • Josh Frydenberg MP, Federal Minister for the Environment and Energy
  • Michael McCormack MP, Federal Minister for Small Business
  • Kate Carnell, Australian Small Business and Family Enterprise Ombudsman
  • Anna Bligh, CEO, Australian Bankers Association
  • Dan Lloyd, Chief Strategy Officer and Corporate Affairs Director, Vodafone
  • Richard Flanagan, Head of Business Marketing, Google Australia and New Zealand
  • Jennifer Westacott, Chief Executive, Business Council Australia 

Vodafone is partnering with COSBOA to host the Vodafone National Small Business Summit, Australia’s premier policy event for small business representatives, government and industry leaders which will take place in Melbourne, 23-25 August 2017.

Registrations are open for the Vodafone National Small Business Summit. For more information please visit: www.cosboansbs.com.au

#NSBS17

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Sydney striding towards a sustainable future

SYDNEY'S population is now north of 5 million people and growth is projected to continue. Its expanding population will test the capacity of key infrastructure including transportation, water, energy and waste treatment facilities. Innovative methods will be needed to meet greater demand.

The Committee on Infrastructure, Transport and Cities is investigating the Australian Government’s role in addressing these issues. It will conduct site inspections in Sydney next week, to examine examples of environmentally and socially sustainable urban design, and to talk to thought leaders at a public hearing on Tuesday.

Committee Chair, John Alexander OAM MP, said Sydney is already making strides towards a more environmentally sustainable urban form, capable of accommodating an increasing population.

“A lot of people in Sydney are aware of these issues and are identifying innovative solutions,” Mr Alexander said.

“The city is a global leader with pioneering urban renewal projects, like Barangaroo, which will be the first ‘climate positive’ precinct in the world when it is completed.

“Our inquiry will look at development and other activities occurring in Sydney with a view to identifying a role for the Commonwealth Government in facilitating long term city planning to address these issues.”

‘Smart cities’ will be on the agenda at the hearing. The Downer Group describes smart cities as efficient, liveable, and economically, socially and environmentally sustainable cities, which “take static infrastructure and services, and make them smart, to empower people and improve their standard of living”.

“While the cost of building smart infrastructure can be more expensive to build, there is huge value to be gained through operational efficiency and improved customer outcomes”, the Downer Group suggested.

 

Public hearing details: 9.00 am – 3.00 pm, Tuesday 22 August, Jubilee Room, NSW Parliament

9.00 am: Green Building Council of Australia
9.40 am: Consult Australia
10.40 am: Sue Holliday
11.20 am: Total Environment Centre
12.00 pm: Lunch
12:50 pm: Downer Group
1.30 pm: Committee for Sydney
2.10 pm: IoT Alliance Australia
3.00 pm: Close

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

Further information on the inquiry, including the full terms of reference, is available on the Committee website.

 Interested members of the public may wish to track the inquiry via the Committee’s website.

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Chevron tax case outcome welcomed

THE FEDERAL Government has welcomed the withdrawal of Chevron’s appeal to the High Court over the Australian Taxation Office’s assessment of $340 million in tax and penalties for interest payments made to related offshore parties.

Chevron sought to challenge Australia’s transfer pricing rules and the appropriate method for establishing an arms-length interest rate for a related party loan.

"The case also raised constitutional issues regarding transfer pricing provisions," Financial Services Minister Kelly O'Dwyer said. "The Full Federal Court upheld the ATO’s position in April this year. The withdrawal of the appeal means that the decision is now final.

"While the Commissioner cannot brief me on any individual's or entity's tax affairs, the resolution of this matter is a significant win for the Australian community.

"The ATO’s initial estimates are that the Chevron decision will bring in more than $10 billion dollars of additional revenue over the next ten years in relation to transfer pricing of related party financing alone.

"Not only does this result put more revenue back to the Australian people, it also strengthens the ATO’s position in pursuing other arrangements where multinationals seek to dodge Australia’s transfer pricing rules.  

"The resolution of this matter clearly demonstrates the Government is taking strong action to ensure multinational companies pay their fair share of tax on the profits they earn in Australia.

"We have already provided an additional $679 million in funding to the ATO through the Tax Avoidance Taskforce to strengthen the ATO’s capabilities and ensure these multinational companies operating in Australia are held to account. The Taskforce is estimated to generate $3.7 billion from 2016-17 to 2019-20.

"We are also taking action by further strengthening Australia’s tax laws. The Multinational Anti-Avoidance Legislation has brought $6.5 billion per annum into Australia’s tax base through the restructuring of corporate groups.

"More recently the Diverted Profits Tax will also put more pressure on these multinational companies to justify their international tax arrangements."

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