THERE is more good news for small business in the Federal Budget, says the Institute of Public Accountants (IPA).

“Last year’s Budget delivered some steps in the right direction with tax cuts and asset write-offs and this year, the Government has kept to their word when it comes to supporting the most critical sector of our economy,” said IPA chief executive, Andrew Conway.

“A further reduction in the income tax rate for small business (from 28.5 percent to 27.5 percent for 2016-17) combined with an increase in the eligibility turnover from $2 million to $10 million for incorporated businesses will be well received by an additional 90,000 small businesses.

“They will also be eligible for other small business tax concessions (including the $20,000 instant asset write-off). 

“Unincorporated small businesses won't completely miss out. The benefits will be extended by increasing the eligibility turnover threshold from $2 million to $5 million pa, and increasing the discount to 8 percent (and 16 percent over the next decade). Disappointingly, the $1,000 cap pa remains. 

“Addressing the bracket creep issue is also a positive with changes for those earning between $80,001 and $180,000 being extended to $87,000; this is good news for both individuals and unincorporated small business owners. 

“We acknowledge that the Government is relying on the "growth dividend" from these measures to reduce the budget deficit. Until then, we are walking on a tight rope," said Mr Conway. 

publicaccountants.org.au

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VICTORIAN Chamber of Commerce and Industry chief executive Mark Stone said the Federal Budget is likely to boost small business prospects in Victoria.

"Tonight’s Federal Budget delivers practical measures that will help Victorian businesses to become more competitive, increase productivity and create new jobs," Mr Stone said.

"This is a sensible budget leading into a federal election. The biggest employer of people in Victoria, small business, is the significant beneficiary.

"This budget coupled with last week’s State Budget further enhances the opportunity for business in Victoria to employ more people, grow, consider export opportunities and improve competitiveness," he said.

"Initiatives to lower the company tax rate to 25 percent over the next 10 years is in line with what the Victorian Chamber and business has been calling for to boost competitiveness and encourage growth."

Mr Stone welcomed the immediate tax relief available for small and medium businesses, with a cut to the company tax to 27.5 percent from July 1, 2016.
 
"Small businesses with an annual turnover of up to $10 million will now benefit through an extension of the instant asset write off scheme," Mr Stone said. "This will allow small and medium businesses to immediately deduct the value of every asset up to $20,000, providing much needed cash flow to these businesses.

"The new $840 million national Youth Employment Package will help up to 120,000 young people secure jobs. The internship program will provide employers with incentives to give young people real work experience and wage subsidies will be provided to employers who hire young workers under the program.

"This mirrors the Victorian Chamber’s own $1 million program to support internships for Victorian businesses and our call for more support for youth employment," he said.

"The announced $2.4 billion investment in Victorian infrastructure will improve the liveability of the State through investments in Melbourne Metro Rail, Murray Basin Rail, the Monash Freeway, the upgrade of the M80 Ring Road and urban and rural roads.

"A crackdown on multinational tax avoidance through a Diverted Profits Tax will impose a 40 percent penalty rate of tax on multinational corporations seeking to avoid paying Australian taxes by shifting profits offshore. This will provide a much needed level playing field for local businesses.
 
"It is refreshing that the budget has taken a considered approach to revenue and spending with a planned return to a balanced budget by 2020-21."

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au    

  

COSBOA praised the budget announcement yesterday, declaring it a win for small businesses of Australia.

CEO for COSBOA, Peter Strong, credited Scott Morrison, Treasurer, and Kelly O’Dwyer, Small Business Minister and Assistant Treasurer saying, "The economy is in now a better position to deal with and  take advantage of change."

Explaining further what the budget means to small business, Mr Strong continued:

"The big ticket item is that the threshold for determining what is considered a small business has been raised to $10 million annual turnover.  This creates a change immediately for government support actions around tax breaks, instant tax write offs and other initiatives.” 

This higher threshold will give more businesses access to the $20,000 instant tax write off announced in last year’s budget.  There is also another tax decrease for these businesses, which means tax has decreased 2.5% in two years.

Mr Strong said, "This is a good message to send to businesses, who want to grow and employ, or start to export and take advantage of the global economy.

"The budget changes and the decisions that were made last year put these businesses in an ideal pool to work with smaller micro businesses to innovate and add value; produce and manufacture goods for domestic and global markets.

“The simplification of the BAS shows a commitment from the government and the ATO to making compliance easier and reflects the fact that the great majority of businesses are honest and transparent in their dealings with government and need less monitoring and better flexibility.” said Mr Strong.

Funding for the Small Business and Family Enterprise Ombudsman (SBFEO), Kate Carnell, has increased from $2m to $6m. 

Mr Strong said, "This is important because Ms Carnell needs to develop the role and gather the information and resources required to aggressively advocate where needed and when needed.”

The last six months also saw significant changes to the Competition Act: the Effects Test.

Peter added, "When implemented, the Effects Test will create more space for innovators to be rewarded for their efforts.

“The creation of fairness in contracts between small business and bigger businesses will provide the fairness necessary for individual stress management and for proper and honest negotiations and contract contents,” said Mr Strong.

The creation of the SBFEO provides the infrastructure and the advocate within the bureaucracy to inform the business community and represent them as necessary. The changes in competition and in contracts cost nothing and the SBFEO is $6m a year.

However, a key issue that has not been addressed in the budget, and COSBOA is hoping it will become a centrepiece of election industry policy, is the reform of the Vocational Education and Training sector. 

Mr Strong said, “To take the greatest advantage of this small business budget and the confidence it will create, we need workers with the right skills, not the skills that make easy money for some greedy RTOs.  For example, those who are unemployed, or workers seeking new careers or to increase their earning potential are the ones who require these skills the most.

“The Youth Pathways outlined in the budget go some way to helping focus on our needs and the needs of the unemployed person, but more needs to be done in VET. We know that it could not be solved in this budget as the problems in that sector are profound and cannot be fixed overnight,” concluded Mr Strong.

For more information on COSBOA, visit www.cosboa.org.au.

THE Institute of Public Accountants (IPA) has extended a well-deserved congratulations to one of its members: Jamie Johns and his firm Sky Accountants has featured in the United Kingdom’s AVN prestigious book: The world’s most inspiring accountants.

“It is great news and we wish Jamie and his team all the very best; it is indeed a triumph to be included in a book that features only the top 60 most inspiring accounting firms in the world ,” said IPA chief executive officer, Andrew Conway.

“It is not really a surprise considering how Sky Accountants has not only embraced technology but also leading the way in cloud computing.

“Jamie and team should be an inspiration to other accountants who must embrace the ongoing technological disruption facing businesses today.

“We also recognise that this accolade comes after Sky Accountants were awarded the winner of the 2015 Most Innovative Accountants Award in the Panalitix Annual Achievement Awards; a job well done,” said Mr Conway.

publicaccountants.org.au

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THE Victoria Tourism Industry Council (VTIC) is disappointed that the Federal Government did not use last night’s budget to heed calls from industry and abandon its proposal to tax Working Holiday Makers.

“International visitors are an easy target, but taxing backpacker income actually ends up harming hospitality businesses and farmers that rely on Working Holiday Makers for labour,” said VTIC Chief Executive Dianne Smith.

“It’s a disincentive to visit Australia.”

Ms Smith continued, “We’re pleased to see that funding for Tourism Australia has been maintained, but the backpacker tax is counter-productive to Tourism Australia’s great efforts to attract international visitors to our shores.”

The clear winner in Budget 2016 is small business, with a reduction in the corporate tax rate for businesses with a turnover of less than $10 million per year, to 27.5 per cent from 1 July.

The threshold increase will provide over 90,000 additional small businesses with access to other tax concessions such the instant asset write-off provisions.

With small tourism businesses making up the majority of Victoria’s visitor economy, these measures will generate tax savings that can be re-invested in the industry.

Other positive measures for tourism in the Federal Budget include:

• $1.5 billion in funding for Victorian infrastructure projects.
• The introduction of trial visa arrangements in key markets – a user pays visa fast track service for nationals from India and the United Arab Emirates, and a three year multiple entry visa for low immigration risk nationals from India, Thailand, Vietnam and Chile.
• Premium border clearance services for international air passengers at Melbourne, Sydney and Perth.
• $12 million over four years from 2016-17 to support implementation of the National Strategy for International Education.
• Ten Year Enterprise Tax Plan — wine equalisation tax rebate integrity and wine tourism funding ($2m in 2016-17).

The Victoria Tourism Industry Council (VTIC) is disappointed that the Federal Government did not use last night’s budget to heed calls from industry and abandon its proposal to tax Working Holiday Makers.

“International visitors are an easy target, but taxing backpacker income actually ends up harming hospitality businesses and farmers that rely on Working Holiday Makers for labour,” said VTIC Chief Executive Dianne Smith.

“It’s a disincentive to visit Australia.”

Ms Smith continued, “We’re pleased to see that funding for Tourism Australia has been maintained, but the backpacker tax is counter-productive to Tourism Australia’s great efforts to attract international visitors to our shores.”

The clear winner in Budget 2016 is small business, with a reduction in the corporate tax rate for businesses with a turnover of less than $10 million per year, to 27.5 per cent from 1 July.

The threshold increase will provide over 90,000 additional small businesses with access to other tax concessions such the instant asset write-off provisions.

With small tourism businesses making up the majority of Victoria’s visitor economy, these measures will generate tax savings that can be re-invested in the industry.

Other positive measures for tourism in the Federal Budget include:

• $1.5 billion in funding for Victorian infrastructure projects.
• The introduction of trial visa arrangements in key markets – a user pays visa fast track service for nationals from India and the United Arab Emirates, and a three year multiple entry visa for low immigration risk nationals from India, Thailand, Vietnam and Chile.
• Premium border clearance services for international air passengers at Melbourne, Sydney and Perth.
• $12 million over four years from 2016-17 to support implementation of the National Strategy for International Education.
• Ten Year Enterprise Tax Plan — wine equalisation tax rebate integrity and wine tourism funding ($2m in 2016-17).

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute more than $20 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au  

THE FEDERAL Government is now taking the final step in testing the market for private sector interest to upgrade, operate and add value to the registry functions of the Australian Securities and Investments Commission (ASIC Registry).

After a successful indicative bid phase where six indicative bids were received from a broad range of private sector bidders, the final bid phase will now commence.

THE Australian Retailers Association (ARA), has welcomed the Federal Budget’s moves to bring spending under control while announcing company tax cuts for small to medium business and personal tax cuts for consumers.

ARA Executive Director, Russell Zimmerman, said the ARA commends the Government on making a path to reduce spending while supporting consumer and business confidence in a soft confidence pre-election environment.

“Introducing new measures to support business and delivering stimulus to the hip pocket on top of the RBA interest rate cut will be just what the doctor ordered for retail,” Mr Zimmerman said.

“The ARA is pleased to see corporate tax cuts, which will help small to medium businesses and the millions of people they employ. On top of this effort, the work to offset bracket creep through personal tax threshold changes will be a boost for consumer confidence and spending.

“While tax cuts for small and medium businesses are welcome, whoever wins the election needs to cut company tax across the board to make Australia more attractive to international and local investment. There is no question that Australia’s company tax rates are excessive by international standards.

“The retail sector has seen a slow start to the calendar year with a lack of confidence triggered by the global environment and the pending Federal election. The ARA and the retail industry have been looking to both the Government and opposition to put more money back in people’s pockets while remaining economically responsible.

“Changes to international tax compliance are welcome, along with the Government’s commitment to fix GST loopholes such as the Netflix Tax and low value GST compliance on goods under $1000, due to be implemented mid next year.

“Superannuation changes should encourage low income earners to build a bigger nest egg while balancing higher income contributions in a responsible way.

“As Australia’s biggest private sector employer, retailers welcome the Government’s youth skills and jobs programme.

“Retailers in the convenience store and grocery space will be disappointed in light of the Government following the opposition in excise increases, which we know effects spending on other items - particularly for lower income earners.”

Mr Zimmerman said the phase out of the five cent coin would have little impact on retailers, given the growing use of electronic payments, with most retailers expected to round prices either up or down to the nearest 10 similar to the abolition of one and two cent pieces in the 1990s.

“What we need to see now is every effort made to strengthen our tax system to build consumer confidence with a clear long term plan from Government and Opposition following the election to support consumers and businesses alike,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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AUSTRALIA has overnight been approved as a member of the Generation IV International Forum (GIF), a co‑operative international endeavour, joining 12 other nations and the European Union to work together on long‑term research on advanced nuclear technologies.

The Forum develops Generation IV technology and addresses not only the construction and operation of the next generation of nuclear power reactors, but also considers fuel efficiency, reducing waste production, and meeting stringent standards of safety and proliferation resistance.

Minister for Industry, Innovation and Science Christopher Pyne said Australia’s success in gaining membership is based on the landmark research infrastructure and world-class research capabilities and expertise at the Australian Nuclear Science and Technology Organisation (ANSTO) to contribute to the GIF’s goals.

“Australia’s invitation to join this important global project marks an exciting opportunity to be at the forefront of global innovation in the nuclear industry,” Mr Pyne said.

“Inclusion in the GIF further strengthens Australia’s position as a nation that has the research muscle to deliver innovations on the global stage.

“It reinforces the Government’s $1.1 billion National Innovation and Science Agenda, encouraging our best and brightest researchers to collaborate with international experts.

“ANSTO has particular research expertise in materials used in high-temperature and highly radioactive environments and in radioactive waste forms, through the development of Synroc, a modern solution for safely immobilising radioactive waste.”

GIF research is focused on six reactor designs that will deliver safe, secure, sustainable, competitive and versatile nuclear technology.

GIF expects that some of these reactor designs could be demonstrated and commercially rolled out in around 2030-2040, and current members are already developing and constructing prototype technologies.

“Australia’s membership of GIF is an affirmation of our international credentials in high-tech science and innovation,” Minister for Foreign Affairs Julie Bishop said.

“Australia has firm non-proliferation goals and nuclear safety objectives, and contributing to the global conversation on this level is an opportunity to assist in the research that is making nuclear technologies safer around the world in the long term.

“Australia will also be helping our neighbours and partners to more efficiently secure energy resources for the future, using even safer and more sustainable technology, which is in everyone’s interests.”

“A long term commitment to international research will further cement Australia’s position as a global energy technology leader.”

Minister for Resources, Energy and Northern Australia Josh Frydenberg said that Australia’s membership will help further our expertise in nuclear science and research.

“Australia has significant expertise and established infrastructure to contribute to this important forum. In addition, we have the world’s largest known uranium reserves which are being used to fuel energy production in a number of countries,” Mr Frydenberg said.

“This forum will help develop the technologies that will be integral to the future of the international nuclear industry.”

www.industry.gov.au

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