THE AUSTRALIAN Parliament has taken a long overdue step towards improving the governance, transparency and management of trade unions and registered employer organisations by today voting up legislation to establish a new Registered Organisations Commission.

“The resource industry congratulates the government and Senate crossbenchers for getting this legislation over the line,” says AMMA chief executive Steve Knott.
 
“We hope this is the start of a process of pushing back against the ALP/ Greens/ Jacqui Lambie Alliance that seeks to shield these groups from a higher level of governance that is standard operating practice in every other business undertaking.
 
“While AMMA has long maintained that all registered organisations should be regulated under the Corporations Act 2001, just as companies and their directors are, the new Registered Organisations Commission is a sound policy outcome and will significantly improve the governance and accountability of Australian unions and registered employer groups.”
 
Resource employers are now looking to the Australian Parliament to address the far more substantive issue of lawlessness and corruption in the construction sector – an issue which impacts taxpayers, communities and small, medium and large businesses.
 
“It’s well beyond time that the Australian Parliament draws a line under the abhorrent behaviours we are seeing coming out of the construction sector, and supports the restoration of the Australian Building and Construction Commission (ABCC),” Mr Knott continues.
 
“Intimidation, thuggery and outright lawlessness should not be accepted anywhere, including in one of the key pillars of our national economy that involves massive amounts of public spending and the delivery of critical community and productive infrastructure.
 
“It is disappointing that the ALP/ Greens/ Jacqui Lambie Alliance continues to oppose the ABCC in the interests of protecting their union mates, when all this legislation would require them to do is comply with the nation’s workplace laws.
 
“This is something that daily events on Australian construction sites, and multiple Royal Commissions, have shown these union officials continually fail to do.
 
“Just this week there are reports that more than $100 billion worth of major projects in Australia have been specifically targeted by the CFMEU’s militancy, including some of the largest resources and energy projects ever built anywhere in the world.
 
“We trust the Senate crossbench to act in the national interest and ultimately pass this legislation rather than leaving the job half done.”

www.amma,org.au

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FOLLOWING the launch of the IPA Deakin SME Research Centre last week, the Institute of Public Accountants (IPA) has said that the mental health and wellbeing of small business owners will be included in the Centre’s policy focus.

“Small business keeps our economy moving; they sustain our communities and families and we have an obligation to understand their drivers, their challenges and assist them realise their potential,” said IPA chief executive officer, Andrew Conway.

“Running a small business is tough; it is all-consuming. Small business owners have everything on the line and that brings with it real anxiety. This contributes to the existing high rates of depression amongst small business owners.

“We need to delve into the social impact of small business ownership to arrive at a day when starting a small business is seen as a natural and viable first option career path for younger people. 

“The IPA Deakin SME Research Centre will explore small business welfare and the social impact with the intention of driving policy that supports the wellbeing, growth and prosperity of small businesses,” said Mr Conway.

publicaccountants.org.au

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THE AUSTRALIAN Parliament’s Joint Committee of Public Accounts and Audit will discuss performance planning and reporting with Commonwealth agencies at a public hearing this Wednesday.

The hearing forms part of the Committee’s inquiry into the Commonwealth performance framework, based on recent Auditor-General reports. The framework, established under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), requires Commonwealth agencies to produce Corporate Plans, Portfolio Budget Statements and Annual Reports, including Annual Performance Statements.

Committee Chair, Senator Dean Smith, said that improving the Commonwealth performance framework has been a long-term focus of the Committee.

“The new framework requires agencies to implement more meaningful performance information and report more consistently throughout the performance cycle, to strengthen accountability to the Parliament and the public.”

“The Committee will hear from agencies on how they have implemented new corporate planning requirements, and from the Department of Finance on the support and guidance it provides in this area. The Committee will also hear from the Australian Taxation Office and the Department of Education and Training on whether they have implemented appropriate performance information for the Higher Education Loan Program,” Senator Smith said.

The JCPAA is the Parliament’s joint public administration committee. The Committee scrutinises the governance, performance and accountability of Commonwealth agencies, and has the power to inquire into all expenditure of Commonwealth money.

Further information about the inquiry can be accessed via the Committee’s website.

Public hearing details: Wednesday 23 November 2016, Committee Room 2R1, Parliament House, Canberra

9:00am: 
ANAO Report 6: Corporate Planning in the Australia Public Sector
Australian National Audit Office, Australian War Memorial, Commonwealth Superannuation Corporation and Department of Finance

9:45am:
ANAO Report 31: Administration of Higher Education Loan Program Debt and Repayments
Australian National Audit Office, Australian Taxation Office, and Department of Education and Training

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

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

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AUSTRALIA’s national resource industry employer group, AMMA, is urging Senate crossbenchers to rise above the union-influenced ALP/Greens/Lambie alliance and do what is in the national interest by voting to restore the Australian Building and Construction Commission (ABCC) and create a new Registered Organisations Commission.

“While the ALP, Greens and Jacqui Lambie have made it clear they won’t support these critical bills, all other crossbench Senators must not be influenced by this lack of objectivity when casting their votes next week,” says AMMA chief executive Steve Knott.

“The resource industry calls on crossbench Senators to instead hold themselves to a higher standard and not ‘walk past and accept’ the well documented unlawful intimidation and thuggery that is occurring in the construction sector.

“Voting to restore the ABCC and establish a Registered Organisations Commission will allow employers and employees to get on with the job, safe in the knowledge that they won’t be targeted by unlawful union industrial tactics or have their work and livelihoods affected by sub-standard, improper or plain corrupt union governance practices.”

ABCC Bill

“Restoring an effective industry watchdog is critical to cleaning up the intimidation, thuggery and outright lawlessness that has re-established an insidious foothold in the building industry,” Mr Knott says.

“Since Labor unceremoniously abolished the ABCC in 2012, productivity in the sector has suffered with days lost to industrial action having increased by 34 per cent.

“The cost of this is borne by Australian taxpayers, mums and dads, and the wider community that is forced to pay well over the odds to build schools, hospitals and other critical community and productive infrastructure.

“The only beneficiaries of turning a blind eye to wilful thuggery and lawlessness are militant union officials and other groups acting in their self-interests. Only a restored ABCC can stamp out such unacceptable and damaging conduct.  

“Australia’s resource employers also welcome the bill’s proposed new rules around unlawful picketing, holding unions more accountable for member conduct, and the extension of the ABCC’s coverage to critically important offshore construction.”

Registered Organisations Bill

“The Registered Organisations Commission will lift standards of governance and accountability in Australia’s employer groups and trade unions, and respond to community and member demands for more effective regulation of registered industrial organisations,” Mr Knott says.

“Increased maximum penalties for registered organisations and their officials will provide a more effective deterrent against the misuse of members’ hard-earned contributions.

“If such measures were in place years ago, this would have helped to avoid scandals such as that involving the Health Services Union that exposed union officials for doing anything but representing and advancing the interests of their members.

“The resource industry urges all Senators to ensure all Australian trade unions operate lawfully and transparently by voting in favour of these two critical workplace relations reforms.”

www.amma.org.au

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THE House Tax and Revenue Committee will hold a roundtable public hearing tomorrow with tax professionals. The hearing precedes the Committee’s public hearing with the Commissioner of Taxation and the Inspector-General of Taxation later this month.

In the lead up to Tax Time 2016, the Australian Taxation Office focused on feeding the results of industry consultation into the progressive project design and implementation of its new lodgement and advisory programs. With the old Electronic Lodgement systems being kept on until full digitalisation in 2017, there is work ahead to inform and support the community to adjust to digital lodgement. 

At this hearing the Committee will meet with three key tax practitioner bodies—CPA Australia, Chartered Accountants Australia and New Zealand, and the Tax Institute—to discuss how the ATO’s reinvention of its services is tracking since the former Committee met with these representatives in February of this year.

In addition to the ATO’s progress on new technology projects, the hearing will also investigate how the ATO’s transformation is working to increase willing participation (voluntary compliance) and build confidence in the ATO and the tax and superannuation systems.

The Committee Chair, Mr Kevin Hogan MP, said “The ATO appears to have made progress in establishing a consultative culture with tax professionals, with Tax Agent and BAS portals improved. At the same time, according to the ATO, while overall online lodgement has increased by nine per cent this year, lodgement by small business declined. The Committee is keen to investigate with tax professionals how they can grow their client base among small business and what the ATO can do to assist them.”

Public hearing details: Wednesday 23 November 2016, Committee Room 2R1, Parliament House, Canberra

4:10pm:
CPA Australia, Chartered Accountants Australia and New Zealand, and the Tax Institute

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

Interested members of the public may wish to track the committee via the website. Click on the blue ‘Track Committee’ button in the bottom right hand corner and use the forms to login to My Parliament or to register for a My Parliament account.

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THE Institute of Public Accountants will be holding its National Congress from November 23 to 25.

Venue is the Grand Hyatt, Melbourne.

The official opening address on Thursday, November 24, will be by IPA Chief Executive Officer, Andrew Conway.

Keynote speakers at the IPA National Congress include: 

• David Morrison AO, Australian of the Year
• Steve Price, Media Commentator
• Richard Grimes, President, International Federation of Accountants
• Kevin Sheedy, AFL Legend

Other presenters include:

Dr Michael Schaper (Deputy Chair, ACCC); Matthew Drennan (Group Head of Research, IOOF); Sandra Ragg (Assistant Director Cyber Policy, Office of the Prime Minister); Amanda Falconer (Talking Brand); Susan Young (principal, Susan young Tax Training); Sam Allert (Reckon); and many more.

Further details of the conference program can be found at:

http://www.publicaccountants.org.au/events-and-training/conferences

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THE Australian Institute of Credit Management (AICM) has partnered with the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in a bid to ensure small businesses across the country get paid in a timely fashion.

The futures of many family and small businesses are being put under serious threat by the payment times imposed by many big businesses and governments across the country, and this self-initiated enquiry aims to put a spotlight on the lengthy payment times that are being dictated, and often missed.

In a 2013-14 ASIC report into business insolvencies, it was identified that inadequate cash flow contributed to 41 percent of companies going to the wall. This inquiry aims to build up an accurate picture of the time it takes for payment to be processed across all areas of business. 

Nick Pilavidis, CEO of the AICM, whose members are professionals in managing cash flow and risks associated with credit sales, believes this inquiry is critical to not only get an accurate and realistic picture of the payment landscape in Australia, but to help small businesses succeed.

He says, “Cash flow is the lifeblood of all companies, however for small and family businesses it’s absolutely critical. Small businesses are often beholden to corporate clients, who dictate payment times. Lengthy payment times and missed payments can have a significant impact on people’s livelihoods and indeed lives.

“For some businesses, being paid on time will mean being able to pay staff on time. Being paid on time means being able to stay in business.

“AICM members regularly see their SME customers delaying payment to them due to the late payment by large businesses. Improving payment times for small business will have a positive effect on the whole business cycle.

“Late payments have a far greater effect than people may at first envisage. We need to raise awareness of this state of play across the country, and put pressure on big businesses to meet their payment obligations.

“The dilemma for small businesses is that they need to engage with large corporates, yet to operate they need the money to keep flowing in. It’s a vicious circle.

“We hope to get a clear understanding so small businesses will firstly have a good idea of what they’re getting into, and what resources they need to have in reserve, and secondly we hope to work with the large businesses to help them understand the real-life impact they’re having.”

As part of the inquiry, ASBFEO and AICM will be joined by state-based Small Business Commissioners in New South Wales, Victoria, South Australia and Western Australia, the Council of Small Business Australia (COSBOA), federal and state/territory governments and their agencies.

For more information visit www.asbfeo.gov.au/inquiries. Small businesses who would like to have their say can do so at the above website or by phoning 1300 650 460.

THE PAYMENT practices of big businesses and governments across the country will be put under the microscope by Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell during an inquiry aimed at weeding-out patterns of behaviour that are undermining the financial viability of small businesses and putting pressure on the entire economy.

The ‘Payment Times and Practices’ Inquiry is the first self-initiated inquiry undertaken by the ASBFEO.  It will be led by the ASBFEO in partnership with state-based Small Business Commissioners in New South Wales, Victoria, South Australia and Western Australia, and will be carried out in association with the Council of Small Business Australia (COSBOA) and the Australian Institute of Credit Management (AICM).

The Inquiry will also seek input from federal and state/territory governments and their agencies.

Anecdotally, small businesses are reporting that some large businesses are taking longer than ever to pay their bills; this Inquiry aims to establish an accurate picture of the trends that have emerged in recent years surrounding the commercial arrangements between large and small businesses, as well as governments and small enterprises.

The Inquiry will assess the impacts these trends are having and will identify practical solutions – including possible regulatory and market-based responses – that can be implemented quickly and effectively to help address identified problem areas.

The Inquiry will seek input from businesses and other industry stakeholders through submissions, an online survey as well as through public consultations, with the final report expected in March 2017.

One of the number one issues impacting small business productivity here in Australia is unfair payment practices – specifically late payments – with some research suggesting Australia lags well behind the rest of the world when it comes to paying invoices on time.

Cash flow is king to small business; late payments can be the difference between success and insolvency so it’s vital these sorts of unfair payment practices are stamped-out to ensure small businesses can reach their full potential, and in doing so, continue to contribute substantially to the overall health of the national economy.

Inquiry Terms of Reference are available at www.asbfeo.gov.au/inquiries.  Small businesses who would like to have their say can do so at the above website or by phoning 1300 650 460. 

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