Business News Releases

Less talk, more small business action for 2017 - ASBFEO

2017 IS EXPECTED to be a year of deliverables for small business and it is important that governments do not lose sight of the sector’s priorities, which would risk undermining future economic growth and prosperity, according to Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell.

“Whether it be small business tax cuts, competition reform, unfair contracts, government procurement or security of payments, governments – and oppositions – have indicated their support for small business, but now we need the rubber to really hit the road; for these measures to be up-and-running and to be proven solutions to a range of small business road-blocks,” Ms Carnell said.

“There are a lot of diverse interests competing for governments’ attention, but the one sector that sits across most – if not all policy areas – is small business, so governments at federal, state and local level must keep the sustainability and growth of this sector at the top of their agenda, if they’re  to keep the broader economy growing.

“There are more than two million small businesses in Australia, employing close to four million people across the country.  Unlike large businesses, the tax revenue generated by our SMEs is on the rise, so their importance should never be underestimated, and their growth shouldn’t be taken for granted,” she said.

While holding governments to account on their small business proposals and promises, Ms Carnell said the ASBFEO also has a packed agenda of its own for 2017.

“Having completed our Small Business Bank Loans Inquiry Report late last year, we will be actively working with the finance sector and ASIC to implement the changes we believe are necessary to restore balance between banks and their small business borrowers, including compliance with unfair contract term laws, along with ensuring a low cost dispute resolution mechanism is put in place to deal with past, present and future claims of small business mistreatment by their bank lender,” Ms Carnell said.

“Our inquiry into payment times and practices is now in full swing.  We’ve had a significant response to the call for submissions and the office is busy going through these in order to report in March on just how bad the problem of late or no payments is for small business, and how we can turn this growing trend around.

“We’ve also finalised a small business statistics report which is a unique document pulling together a range of data to inform on a variety of areas including the size of the sector, its diversity, female participation, innovation and export market participation, which will be released shortly,” she said.

Other issues the ASBFEO has outlined in the 2017 Agenda include reducing Red Tape, improving SME access to government procurement, the promotion of best practice succession planning for family enterprises, and the importance of mental health for small business owners and their staff. 

A copy of the ASBFEO 2017 Advocacy Agenda can be found on the website: www.asbfeo.gov.au

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Termites and nuisance taxes - IPA

THE Institute of Public Accountants (IPA) is calling on the government to implement holistic tax reform and in doing so eradicate nuisance taxes.

“Nuisance taxes and termites have something in common; termites eat away at the family home while nuisance taxes erode the revenue base and economic stability,” said IPA chief executive officer, Andrew Conway.

“Payroll tax is an example of a tax that is counterproductive to economic growth; it acts as a disincentive to employment and does not motivate small entities to grow.  It should be removed.

“The IPA supports the Henry Review recommendation that nuisance taxes should be removed and our reliance on direct income taxes decreased.

“A shift towards greater reliance on consumption taxes will encourage savings and investment and provide a more suitable source of revenue.

“Most nuisance taxes which are inefficient, distortive and inequitable are levied by State governments.  Reform in these areas will require an examination of the adequacy of State and Territory revenues.

“Stamp duty is another example of a state based tax which should be either abolished or rates reduced to a level that minimises the drag on the economy.

“We need ‘big bang’ tax reform with consideration of the total tax mix, not necessarily to change the overall tax burden but to deliver a fairer, more effective, internationally competitive and less complex tax system,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission.  For more information go to: http://bit.ly/2jxoU7L

publicaccountants.org.au

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Three new inquiries by Public Accounts Committee

THE Joint Committee of Public Accounts and Audit has launched inquiries into Commonwealth grants administration, infrastructure spending and financial statements as part of its examination of Auditor-General reports.

The JCPAA is a central committee of the Parliament and has the power to initiate its own inquiries on the Commonwealth public sector. The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

Committee Chair, Senator Dean Smith, said that, as Parliament’s joint public administration committee, the JCPAA has an important role in holding Commonwealth agencies to account.

“Grants administration is a significant activity for many Commonwealth agencies, involving the payment of billions of dollars of public funds each year. The Committee has launched an inquiry into this important area, drawing on a number of recent audits,” Senator Smith said.

“The inquiry into Commonwealth financial statements reflects the JCPAA’s role in examining whether public money is used in an efficient, effective, economical and ethical manner. Similarly, the Committee’s inquiry into Commonwealth infrastructure spending will examine whether appropriate steps have been taken to protect the Commonwealth’s interests and obtain value for money in two road infrastructure projects.”

By taking a thematic approach to these inquiries, the Committee seeks to encourage improvements and shared learning in key areas of public administration.

The Committee invites submissions to the inquiries, addressing the terms of reference. Further information about the inquiries can be accessed via the Committee’s website.

The Committee’s inquiries are based on the following Auditor-General reports:

Commonwealth grants administration

Commonwealth infrastructure spending

Commonwealth financial statements

 Interested members of the public may wish to track the committee via the website

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Australian Cybercrime Online Reporting Network receives more than 45,500 reports

THE Australian Cybercrime Online Reporting Network (ACORN) is continuing to boost law enforcements efforts to crack down on cybercrime, with more than 45,500 reports received through the online system in 2016.

"The threat of malicious cyber activity is serious and growing. It endangers the privacy and safety of Australians, the wealth and information generated and held by our businesses and governments, and our national security," Justice Minister Michael Keenan said.

"With (February 7) marking Safer Internet Day 2017, raising awareness of emerging online issues and encouraging all Australians to watch out for common online scams has never been more vital. For consumers, online shopping remains an increasingly attractive option, but Australians need to be wary of fake websites selling counterfeit items and gifts.

"Scammers are known to set up sophisticated websites designed to trick consumers into thinking they’re legitimate businesses, often using a ‘.com.au’ domain name and stolen Australian Business Number (ABN)," Mr Keenan said.

"Protecting the Australian people, economy, our way of life, and making us more resilient to attack is the Australian Government’s top priority.

"The Government launched the ACORN in November 2014 as an easy way for the public to report cybercrime and contribute to a national intelligence database which authorities can use to identify and shut down criminals.

"The leading types of cybercrime being reported to the ACORN are online fraud and scams, with 22,679 reports received, accounting for 43.97 percent of total reports received in 2016. Online trading issues which affect Australians who buy and sell goods online were the second highest type of cybercrime reported, with ACORN receiving 8,783 reports in 2016," the Minister said.

"Victoria received the highest number of cybercrime reports, closely followed by Queensland and New South Wales.

"The majority of reported victims of cybercrime were between 20 and 40 years of age (40%), followed by the 40–60 age group (38%).

"I encourage all members of the public to be vigilant online and work together to ensure a safer and more secure digital environment for all Australians by reporting cybercrime to the ACORN."

The ACORN can be accessed online on the ACORN website.

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Inquiry into the Australian film and television industry

THE House of Representatives Standing Committee on Communications and the Arts has received an inquiry into the Australian Film and Television Industry and is calling for submissions.

The inquiry’s Terms of Reference are:

Factors contributing to the growth and sustainability of the Australian film and television industry.

Committee Chair, Mr Luke Howarth MP said: “the committee wants to hear how Australian independent filmmakers, and major film and TV companies can expand and better compete for investment with producers and multi-platform production companies from overseas.”

“We also want to hear from investors and the industries that support local production, for example: digital animators and editors, and sound and set production companies,” Mr Howarth said.

Screen Australia’s Drama Report (2015-16) notes that Australian films have recently performed the strongest in more than a decade, with four titles each earning over $10 million (including: Mad Max: Fury RoadThe Dressmaker, Oddball and The Water Diviner) and contributing 7.2 percent to total box office sales.

Screen Australia’s report also suggests that 2015 was a standout year for Australian films – well up on the previous year, when the share was 2.4 per cent, and above the 10-year average of 4.3 per cent.

Mr Howarth added: “As a committee, we believe Australian film and TV can be more competitive, and we will be investigating ways the Australian industry can grow sustainably.”

Submissions are being sought by Friday, March 31, 2017, and can be made online through the webpage: www.aph.gov.au/FilmTV or emailed to the secretariat at This email address is being protected from spambots. You need JavaScript enabled to view it..

Inquiry updates, submissions and public hearing transcripts will be published on the webpage as the inquiry progresses.

 

Website: www.aph.gov.au/FilmTV

Interested members of the public may wish to track the committee via the website

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ASBFEO early findings highlight pitfalls of late payments

AN INQUIRY investigating payment times and practices in Australia is in full swing with preliminary findings confirming that big businesses and some governments are taking longer than ever to pay small businesses.

Early results from the Inquiry – which is being conducted by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in partnership with state-based Small Business Commissioners (SBCs), the Council of Small Business Australia (COSBOA), the Australian Institute of Credit Management (AICM) and the Institute of Public Accountants (IPA) – has found almost 50 percent of small businesses experience late payments on at least half of the bills owed to them.

The Inquiry has also found the practice of late payments is getting worse, with around 60 per cent of small businesses reporting an increase in the trend over the past 12 months.

Almost 70 percent report that the practice has reduced business profitability, with many business owners acknowledging it has a serious impact on their mental health given the added stress and anxiety late payments – and the associated cash-flow problems – can trigger.

Based on the Inquiry survey data, it’s becoming quite clear that big businesses – particularly large multi-nationals – are exploiting the power imbalance that exists in their relationship with small business people who simply aren’t in a position to argue for better payment terms – or to demand immediate payment – for fear of destroying their relationship with the larger company.

The Inquiry has also found the practice is not limited to one sector, with the impact of extended and late payments rippling through the entire economy.

Small businesses have until the end of February to have their say. Those who would like to contribute to the Inquiry can do so by completing a survey which can be found at: www.asbfeo.gov.au

An Inquiry Issues Paper is also available on the website.  Those wishing to provide feedback on the Issues Paper can do so by emailing: This email address is being protected from spambots. You need JavaScript enabled to view it. or by contacting the SBC in their state.

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Committee held first public hearing on trade and investment growth

THE Joint Standing Committee on Trade and Investment Growth held its first public hearing in Canberra today.

The committee is inquiring into Australia’s trade and investment relationship with Indonesia.

The Department of Education and Training appeared before the committee to discuss the education sector.

This is an important sector, which contributed over $19 billion to Australia’s economy in 2015-16 through the export of education-related services, which are one of Australia’s largest service exports. Further, Indonesia is Australia's eighth largest source country for international students, contributing $619 million into the economy.

Education is, therefore, a vital component to Australia’s overall trade, and, an area where growth opportunities should be examined.

Chair of the Committee, Mr Ken O’Dowd said, “In addition, there are broader social and cultural benefits of international education including developing a skilled workforce, international collaboration, opening up new markets for Australian businesses, and building cultural awareness.”

The hearing was audio webcast live at aph.gov.au/live

Interested members of the public may wish to track the committee via the website

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Talking tourism in the Top End

PARLIAMENT'S Northern Australia Committee will hold the first public hearing for its inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern Australia on Friday, February 17, 2017 in Parliament House, Canberra.

Following the Australian Government’s 2015 White Paper on developing Northern Australia, the Government announced in February 2016 the Northern Australia Tourism Initiative.

he Initiative includes the Entrepreneurs’ Programme for Tourism, Northern Australia which is designed to help businesses commercialise novel products, processes and services as well as improve their productivity and competitiveness.

The Committee Chair, Warren Entsch MP, stated, ‘Broadening the experience offered to international and domestic visitors to Northern Australia will help to increase visitor numbers and the duration of their stay, thereby boosting the regional economy. The Entrepreneurs’ Programme has an important part to play in allowing tourism operators to tap into the wealth of potential tourist experiences offered in Northern Australia.’

The Committee will receive evidence from the Entrepreneurs’ Programme for Tourism, Northern Australia as well as several government agencies involved in facilitating tourism in Northern Australia.

The hearing program and further information about the Committee’s inquiry, including the terms of reference is available on the Committee’s website: www.aph.gov.au/jscna.

Public Hearing Details: 8am to 10:50am, Friday February 17, Committee Room 1R3, Parliament House, Canberra

The hearing will also be webcast at www.aph.gov.au/live.

Interested members of the public may wish to track the committee via the website

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Too big to ignore tax reform - IPA

AUSTRALIA'S current mix of taxes is not fit for purpose and is stifling the country’s growth potential according to the Institute of Public Accountants (IPA).

“Australia desperately needs large scale tax reform if it is to address the current fiscal issues we face and it’s beyond time that the Government delivered on its commitment for a promised tax white paper,” said IPA chief executive officer, Andrew Conway.

“We are not advocating for a change in the overall tax burden but rather a change in the mix to deliver a fairer, more effective, internationally competitive and less complex tax system.

“There have been too many stop-starts when it comes to much needed reform.  Tax reform represents one of the strongest levers the Government has at its disposal to revive productivity, competitiveness and growth.

“Australia faces interconnected twin challenges: ensuring fiscal sustainability, as outlined in the recent MYEFO update, combined with the need to boost productivity growth to sustain growth in living standards.

“A shift to growth supporting taxes is required to sustain Australia’s economic momentum and meet all current and future spending needs.  The current taxation mix is insufficient to meet expenditure commitments and Australia faces a revenue funding gap, especially in light of the fall in the terms of trade and sluggish national income growth.

“Our tax base is too narrow, unstable and uncompetitive.  We believe the terms of reference for the white paper should be broad and include the GST as part of the mix; true reform will not be achieved if the total tax mix is not considered.

“Consumption taxes such as GST represent one of the most efficient and sustainable tax bases available; yet, Australia’s GST base is relatively narrow and covers less than 50 per cent of private consumption which gives Australia the seventh lowest coverage ratio amongst 32 OECD countries.

“The current political environment has made ‘big bang’ tax reform extremely difficult for the major political parties.  As a way forward, consideration should be given to establishing an independent tax reform commission to support tax policy decision-making,” said Mr Conway.

These recommendations form part of the IPA’s 2017-18 pre-Budget submission. Go to http://bit.ly/2jxoU7L

 

publicaccountants.org.au

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Water use efficiency inquiry announced

THE House Standing Committee on Agriculture and Water Resources has begun an inquiry into water use efficiency.

Australia is spending record amounts to modernise its irrigation infrastructure in an effort to make agricultural water use more efficient and increase the amount of water available for environmental flows.

Committee Chair Mr Rick Wilson MP said that the Committee’s inquiry will focus on the benefits these upgrade programs provide for irrigators as well as the value for money they represent, and will also seek to identify any areas where resources may be better directed.

“The agricultural sector is obviously very important to the Australian economy and irrigated agriculture is a big part of that,” Mr Wilson said. “The Committee wants to make sure that Australia is getting the best outcomes from these programs that we possibly can.”

The Committee will be accepting submissions to the inquiry until 31 March 2017.

The inquiry will focus on:

  • the adequacy and efficacy of current programs in achieving irrigation water use efficiencies,
  • how existing expenditure provides value for money for the Commonwealth,
  • possible improvements to programs, their administration and delivery, and
  • other matters, including, but not limited to, maintaining or increasing agricultural production, consideration of environmental flows, and adoption of world's best practice.

Interested members of the public may wish to track the committee via the website

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QRC calls for power to the north

THE CHIEF Executive of the Queensland Resources Council has called on the Federal Government to invest in a high-technology power station for North Queensland.
 
Speaking in Townsville at a business breakfast, Mr Macfarlane said a chunk of the $5 billion Northern Australia Infrastructure Fund could be used for a modern high efficiency, low emission (HELE) power plant.
 
“It needs to be a less ideological argument about where we get our energy from and a more practical discussion about how we provide both reliable and cheaper electricity and reduce green house gas emissions,” Mr Macfarlane said.
 
“If we’re going to use technologies and government grants for renewables then we should also use it for coal, which provides stable base load power.
 
“And we have some of the highest quality, low emission coal in the world right here in Queensland.
 
“The plant would need federal funding to provide a long-term base load for both business and households in the north.”
 
Mr Macfarlane said – regardless of what the foreign funded green activists chant – the reality is that coal-fired electricity and renewables will be part of the future for decades to come.

www.qrc.org.au

 

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