Business News Releases

ACCC calls for comment on proposed acquisition of iiNet by TPG

 

The Australian Competition and Consumer Commission today released a Statement of Issues outlining the ACCC’s preliminary views on the proposed acquisition of iiNet Ltd (ASX:IIN) (iiNet) by TPG Telecom Ltd (ASX:TPM) (TPG).

The ACCC is seeking further information to determine whether the proposed acquisition would be likely to substantially lessen competition in the market for the supply of retail fixed broadband services.

“The proposed acquisition would combine two of the five largest suppliers of fixed broadband in Australia. The ACCC is exploring the extent to which the acquisition of iiNet will reduce competition by reducing the likely competitive tensions in respect of pricing, innovation and service quality,” ACCC Chairman Rod Sims said.

“The ACCC has received a number of submissions from consumers. Their concerns primarily focus upon fears that iiNet’s customer service levels will decline as a result of the proposed acquisition.”

“The ACCC is also considering whether the competitive constraint posed by the remaining competitors, namely Telstra, Optus, M2 and the much smaller market participants, would be sufficient to prevent a substantial lessening of competition in the supply of fixed broadband services. As a general proposition, competition is stronger when the market contains more competitors,” Mr Sims said.

The ACCC’s preliminary view is that the proposed acquisition is unlikely to raise competition concerns in other markets, including in relation to the supply of wholesale transmission (or backhaul), mobile broadband and voice services.

The Statement of Issues is not a final decision. It provides the ACCC’s preliminary views on the proposed acquisition and the lines of further inquiry that the ACCC wishes to undertake.

The ACCC invites further submissions from interested parties in response to the Statement of Issues by 2 July 2015. As a result, the ACCC’s final decision will be deferred until 20 August 2015.

The Statement of Issues is available athttp://registers.accc.gov.au/content/index.phtml/itemId/1185185/fromItemId/750991

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The pros and cons of selling uranium to India

A DEAL to sell uranium to India, with the potential for significant employment and export benefits, will be the focus of a public hearing in Canberra on Monday.

The Parliament’s Joint Treaties Committee is completing an inquiry into the deal which would see Australian uranium sold for the first time to a country that is not party to the Nuclear Non-Proliferation Agreement.

Australian Government witnesses will give evidence on the safeguards in the deal to ensure that Australian uranium is used for safe civilian purposes only and is not diverted to military programs.

Committee Chair, Wyatt Roy MP, said the deal could improve the lives of ordinary Indians by reducing energy poverty in India.

“The deal breaks new ground and the issues involved are complex.  It is important to ensure the deal is done right,” he said.

Negotiations for the sale of uranium to India began in 2006 and agreement was reached in 2014. The Government believes the deal maintains Australia’s strong commitment to nuclear nonproliferation and disarmament.

The deal has attracted criticism from some nuclear non-proliferation specialists because India is not party to the Nuclear Non-Proliferation Treaty and has been subject to external and internal criticism for its nuclear safety record.

“The committee will be undertaking a diligent and comprehensive look at the proposal to make sure all the issues are fully explored and considered,” Mr Roy said.

Public Hearing: Monday 15 June,
Committee Room 2R1,
Parliament House, Canberra,

11.30am – 1.00pm:
Australian Safeguards and Non-Proliferation Office
Department of Foreign Affairs and Trade
Australian Radiation and Nuclear Protection Agency
Department of Industry and Science

The hearings will be broadcast through: www.aph.gov.au/live

Copies of the treaties and submissions received can be found at: http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties

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Australia will choke without tax overhaul - IPA

AUSTRALIA risks choking and the current tax system is not doing us any favours; in fact it is holding us back, says the Institute of Public Accountants (IPA).

“Australia’s current tax system inhibits growth and stifles entrepreneurialism and innovation,” said IPA chief executive officer, Andrew Conway.

“Do we want a tax system which continues to tax effort or a system that taxes consumption?  It is the IPA’s view that the latter should be pursued if Australia is to arrest its productivity decline and make the tax system competitive again.

“Tax reform represents one of the strongest levers the Government has at its disposal to revive productivity, competitiveness and growth.

“Australia faces dual challenges of the need to ensure fiscal sustainability and boost productivity growth to sustain growth in living standards.

“Moving to growth supporting taxes is essential to sustain Australia’s economic momentum and to meet all current and future spending needs.

“Consumption taxes such as the GST represent one of the most efficient and sustainable tax bases available and yet Australia’s GST base remains relatively narrow and covers 47 per cent of private consumption.

“We can’t keep relying on bracket creep but it will be inevitable without a change in the tax mix,” said Mr Conway.

The IPA’s submission to Treasury on the Tax Discussion Paper can be viewed at: www.publicaccountants.org.au/resources/news-and-media/submissions/tax-discussion-paper

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Weak trade figures and excessive wage increases causing concern - ARA

 

THE Australian Retailers Association (ARA) said monthly retail trade figures reported today by the ABS were relatively unchanged (0.0 percent) following a 0.3 percent rise in March 2015.

ARA Executive Director Russell Zimmerman said although today’s monthly figures were modest, year on year growth for April is looking strong at 4.1 percent.

“In seasonally adjusted terms there were rises in cafes, restaurants and takeaway food services (0.8 percent) and clothing, footwear and personal accessory retailing (1.3 percent). 

“These rises are to be expected when you take into account Autumn’s cold weather which had well and truly settled in during the month of April, prompting many Australians to start building their winter wardrobes and turn to their local restaurants and takeaway services for comfort food.

“In seasonally adjusted terms there were rises in Victoria (0.5 percent), the Australian Capital Territory (0.6 percent), South Australia (0.1 percent) and the Northern Territory (0.1 percent). New South Wales was relatively unchanged (0.0 percent) and Queensland faced a fall (-0.6 percent), as did Tasmania (-0.9 percent) and Western Australia (-0.1 percent). 

"While interest rates are sitting at an all time low and the recently released Federal Budget delivered some good news for business, unfortunately there is still a lot of support needed to ensure the success of the retail industry into the future.

“The ARA also has strong concerns following the Fair Work Commission’s decision this week to increase the National Minimum Wage to $656.92 per week, or $17.29 per hour.

"The ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector, so we are obviously concerned about the adverse effects this decision will have on retailers. The retail industry simply cannot keep up with excessive wage increases,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (March 2015 – April 2015 seasonally adjusted)

Clothing, footwear and personal accessory retailing (1.3%), Cafes, restaurants and takeaway food services (0.8%), Household goods retailing (0.0%), Food retailing (-0.1%), Other retailing (-1.0%) and Department stores (-0.7%). Total sales (0.0%).

South Australia (0.1%), Australian Capital Territory (0.6%), Victoria (0.5%), New South Wales (0.0%), Western Australia (-0.1%), and Northern Territory (0.1%), Queensland (-0.6%) and Tasmania (-0.9%). Total sales (0.0%).

YEAR-ON-YEAR RETAIL GROWTH (April 2014 – April 2015 seasonally adjusted)

Household goods retailing (8.5%), Clothing, footwear and personal accessory retailing (7.5%), Food retailing (3.5%), Cafes, restaurants and takeaway food services (3.3%), Department stores (1.4%) and Other retailing (0.6%). Total sales (4.1%).

Australian Capital Territory (5.9%), South Australia (5.8%), New South Wales (4.9%), Victoria (4.4%), Western Australia (2.9%), Queensland (2.8%), Tasmania (2.2%) and Northern Territory (-0.7%). Total sales (4.1%).

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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Inquiry into environmental register to commence public hearings

THE House of Representatives Standing Committee on the Environment will conduct public hearings in the week of 15 June 2015 as part of its inquiry into the Register of Environmental Organisations.

Public hearings will commence in Canberra, beginning with the Department of the Environment at 4 pm on 16 June 2015 and the Australian Charities and Not-for-profits Commission at 9.30 am on 18 June 2015. Further information will be available from the committee’s website closer to the date.

Submissions to the inquiry closed on 21 May 2015.

Committee Chair, Mr Alex Hawke MP, said he is pleased with the level of interest in the inquiry and appreciates that many organisations and individuals have taken the time to make a submission or share their views on the Register of Environmental Organisations.

“The response to the inquiry is evidence of the strong level of public interest in the work of not-for-profit environmental organisations. We look forward to, in the first instance, hearing from the government agencies involved in the administration of the sector, and we anticipate gathering evidence in a range of communities around Australia as the inquiry progresses over the coming months,” he said.

Further details about the inquiry, including submissions received and the terms of reference, can be found on the inquiry’s website at: http://www.aph.gov.au/reo.

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Queensland FIFO inquiry must be fair and factual, says AMMA

NATIONAL resource industry employer group, AMMA, has urged a Queensland inquiry into FIFO practices to consult thoroughly with industry before making recommendations that could negatively impact business and employment opportunities in the state.

AMMA’s submission to the Queensland Parliamentary inquiry: fly-in, fly-out and other long distance commuting work practices in regional Queensland is based on feedback from its member companies which rely on FIFO working arrangements for their operations.

“The resource industry has been a major pillar of the Queensland economy and will continue to play a vital role in Australia’s anticipated emergence as the world’s largest exporter of LNG by 2020,” says AMMA executive director, policy and public affairs, Scott Barklamb.

“FIFO work practices have played an important role in developing the state as a resources investment destination. This benefits all Queenslanders through economic growth, royalties and taxes.

“AMMA urges the inquiry to undertake a sensible, considered and consultative approach to work practices which are critical to many resource operations remaining viable.”

Mr Barklamb says resource employers rely on non-residential employees primarily where their operations are remote from communities. He adds that such arrangements often suit both employers and employees, and numerous resource projects would not survive without FIFO.

“For such employers, utilising FIFO is the only way they can source the range of specialised skills they need, and ensure their employees travel safely to and from work,” he says.

“If FIFO was restricted or banned, many of Queensland’s remote mines would close down. This would be devastating for FIFO workers and their families, as well as the flow-on support sectors, and tax and royalty payments that help fund services for the wider Queensland community.”

Mr Barklamb says the inquiry should consider ‘robust data and evidence’ before coming to any conclusions about the economic, social and health impacts of FIFO.

“Australia’s resource employers take the health and wellbeing of their employees very seriously, and provide health services and support programs to FIFO and non-FIFO employees in Queensland,” he adds.

“Resource organisations that utilise FIFO also continue to invest significant capital and in-kind support into the social fabric of regional communities.

“FIFO is vital for our industry, the Queensland economy and the community.  AMMA hopes the inquiry will carefully consider all the facts and consult with industry before making any recommendations that could negatively impact Queensland’s reputation as a resources investment and employment destination.”

www.amma.org.au

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VECCI’s objection to the Fair Work Commission’s annual national minimum wage increase

VECCI Chief Executive Mark Stone said the organisation "acknowledges that those on the minimum wage deserve a pay rise but the 2.5 percent increase ($16 per week) is well above ACCI’s recommendation that any rise should not exceed $5.70 per week".

Mr Stone said, "The increase must be paid for by business, including small business, many of which are already doing it hard in the current economic environment. 

"Employment on-costs, including 9.5 percent superannuation, workers’ compensation and payroll tax, compound the impact of this increase and will be detrimental to small business cash flow and investment. 

"VECCI is disappointed that there was no deferral of the increase given the fragile economy and persistently high unemployment, especially among young people. Today’s decision takes effect from 1 July 2015," he said.

"Setting the minimum wage is a balancing act but the end result must not put existing and future jobs at risk.

"Higher rates of pay do no good if they are not linked to productivity growth and result in declining employment opportunities."

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

vecci.org.au

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Federal Small Business Minister set to open Vodafone National Small Business Summit Start Up

HON. BRUCE BILLSON MP will join the Council of Small Business of Australia (COSBOA) to put the individuals behind small businesses in the spotlight ahead of its annual policy event, the Vodafone National Small Business Summit in July.

The inaugural Summit Start Up will be opened by the Hon Bruce Billson, the Federal Small Business Minister on the evening of Wednesday 15th July; where the community, culture, and diversity of small businesses will be celebrated.

All individual business owners are invited to join the Summit Start Up, to network with their peers, showcase their entrepreneurial force and meet with key leaders and policy influencers and makers.

During the evening, attendees can hear commentary from various sectors – from accountants and gym owners, to mechanics and hairdressers – about what role they play in the community and how this impacts the public’s welfare.

Minister Billson said: “I am delighted to join small business owners and representatives at the inaugural Start Up to COSBOA’s Summit. Our Government knows the hard working women and men of small business really are the engine room of our economy. Small business has been and continues to be an enduring focus and priority for me, both professionally and personally.”

Peter Strong, CEO of COSBOA, added: “Small business is vital to the Australian economy, although we sometimes get caught up discussing the financial impacts of small business; it’s important not to lose sight and be aware of their contributions to communities and the cultural fabric on a daily basis – whether that’s the local cafe owner, who knows you on a first name basis, or local hairdresser, who stays open to work around your calendar.”

Peter Strong and the Minster will also be joined by Andrew Chanmugam, Vodafone’s General Manager of Business, and Robert Gerrish founder of Flying Solo, home to a community of over 75,000 Australian solo and micro businesses, sharing their advice and learning with owners.

COSBOA is also pleased to announce Westpac is a major sponsor for this year’s Summit. General Manager for Small Business, Julie Rynski, adds: “Small business is the backbone of the Australian economy, and Westpac is excited to be involved in an event celebrating the success of Australia’s small business owners and entrepreneurs.

“As a major sponsor of the inaugural Small Business Summit Start Up, we look forward to advancing the conversation around small business community and culture, which is vital to the continued strength of the small business sector and Australian economy as a whole.”

Tickets for the Small Business Summit Start Up on Wednesday 15th July are $20 per person. Full registration for the Vodafone National Small Business Summit is now also open.

For more information please visit www.nationalsmallbusinesssummit.com.au

 

  1. The Council of Small Business Australia (COSBOA) was founded in 1979 and was incorporated in 1985.
  2. COSBOA is Australia’s peak body exclusively representing the interests of small businesses.
  3. The VODAFONE National Small Business Summit 2015 will be held at Doltone House Jones Bay Wharf, Sydney on 16 and 17 July.
  4. The VODAFONE National Small Business provides the small business sector with the opportunity to discuss and identify relevant issues, promote innovation and generate ideas to stimulate growth within the industry.
  5. For more information about the summit visit: www.nationalsmallbusinesssummit.com.au
  6. For more information on COSBOA visit: http://www.cosboa.org.au/
  7. Interviews with Peter Strong, CEO are available upon request.
  8. Connect through social media channels: 

Facebook: /COSBOA

Twitter: @COSBOA

Hashtag: #NSBS15

LinkedIn: http://www.linkedin.com/company/cosboa

  1. COSBOA is a long-time advocate of small business on issues from taxation and workplace relations, through to competition law and retail tenancy.

The goals of COSBOA are to promote and support the development of small businesses in Australia and the council recognises that it is a national imperative for Australia that the needs of small business are on the national policy agenda.

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Inquiry to kick start the engine of small business employment

BARRIERS to growth for private sector small businesses, including government laws and regulations, excessive red tape and compliance costs will be on the agenda tomorrow for the first public hearing of the Standing Committee on Education and Employment’s inquiry into small business employment in Australia.

The Australian Small Business Commissioner, who represents small business interests and concerns to the Australian Government, will appear before the committee with the discussion aimed at identifying the key issues preventing small businesses from creating employment opportunities.

Committee Chair, Ewen Jones MP, emphasised the importance of supporting small business job creation.

“Small business makes up over ninety five per cent of all businesses in Australia. By supporting this large and important group in creating jobs we can help reduce unemployment and improve the lives of Australians,” he said.

“The committee is determined to find solutions for problems facing small businesses and looks forward to meeting with the Commissioner to identify what they might be.”

Details of the hearing are as follows:

Date: Wednesday 03 June 2015
Time: 11:20 am – 12:45 pm
Venue: Committee Room 1R4, Parliament House, Canberra

Submissions to this inquiry are also welcome. For further information, including the full terms of reference and how to prepare a submission, please visit the committee’s website at www.aph.gov.au/SmallBusinessEmployment or contact the secretariat on (02) 6277 4573.

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Wage review decision to adversely affect retailers and their employees

THE Australian Retailers Association (ARA) is concerned for the future of the retail industry after the Fair Work Commission has today awarded an unmanageable $16 a week increase in the minimum wage.

From 1 July 2015, the National Minimum Wage will increase to $656.92 per week, or $17.29 per hour.

Executive Director Russell Zimmerman said the ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector.

“We are obviously concerned about the effects this decision will have on retailers.

“Retailers and young Australians have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels, reducing youth unemployment. Many small to medium enterprise retailers are reliant on a minimum wage workforce, and the announcement today to increase wages during this time of low consumer confidence and low growth will sadly result in further job losses and business closures – a very distressing truth for retailers.

“The minimum wage increase, coupled with weak trade figures and penalty rates, will only cause further damage to retailers who are struggling to keep their heads above water as it is. While interest rates are currently at a record low (with the Reserve Bank of Australia today deciding to keep rates on hold at 2.0 percent) and there is support from the recently released Federal Budget, the retail industry cannot simply keep up with excessive wage increases.

“The ACTU and SDA aren’t about creating jobs and opportunity but they now appear to be on a low productivity/high wages rampage which will only harm retailers and their employees,” Mr Zimmerman said. 

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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Reinvention of the ATO on track

THE Tax and Revenue Committee today tabled its first report for its inquiry into the 2014 Australian Taxation Office (ATO) Annual Report.

The report outlines a range of topics including: the ATO’s relationship with taxpayers; the administration of the ATO; and compliance strategies. The report commends the ATO for its progress establishing its strategic direction and the steps it has taken, and continues to take, to ‘reinvent’ the client and staff experience to change the culture of the ATO.

Committee Chair, Bert van Manen MP, said that the ATO has made good progress towards achieving its goal of being valuable, relevant and trusted by the Australian people.

“I am particularly impressed with the ATO’s clear strategic direction and its commitment to meaningful performance indicators. A clear strategic direction and robust performance measurement and reporting are key elements of an efficient and transparent tax administration,” he said.

The committee commended the incorporation of modern technology into the ATO’s systems in its efforts to improve both the accuracy of tax information and the taxpayer experience. For example, the ATO is introducing Single Touch Payroll, Standard Business Reporting and no-touch tax returns. 

The Chair said that the taxation system relies on the Australian people’s trust that the system is fair and equitable.

“Non-compliance, such as demonstrated by those operating within the cash economy, robs the Australian people of much needed revenue. It also disadvantages honest and hard-working Australians who are doing the right thing. More must be done to tackle non-compliance,” Mr van Manen said.

The report listed a number of key areas that the committee will discuss at its next hearing for its second report into the 2014 ATO Annual report in late 2015.

The report can be found on the committee website: http://www.aph.gov.au/taxrev.

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