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Benefitting from Australia’s Free Trade Agreements

THE Australian Parliament’s newly appointed Trade and Investment Growth Committee today commenced its inquiry into the business experience in utilising Australia’s existing free trade agreements (FTAs) including New Zealand, Singapore, Thailand, the United States, Chile, the Association of Southeast Asian Nations (along with New Zealand) and Malaysia.

In announcing the inquiry, the Chair of the Committee, Mr Ken O’Dowd MP said, "Australia is the world’s 12th largest economy with its major trading partners being China, Japan, and the United States. Australia has a number of long-standing FTAs with other countries including with ASEAN-New Zealand, Chile, Malaysia, United States, Singapore, and Thailand. These FTAs provide an important opportunity for Australia to boost its trade with these countries and benefit the future growth of Australian business."

The committee will examine the opportunities and challenges faced by Australian business arising from Australia’s existing FTAs with a view to identifying how Australia might best benefit from the recent and proposed North Asia FTAs.

"While FTAs create a framework for increased trade and investment it is important to address any barriers preventing realisation of these benefits and address them in future agreements," Mr O’Dowd said.

The committee was established to examine measures to further boost Australia’s trade and investment performance, including barriers to trade, reduction of red tape, and structural challenges and opportunities for the Australian community. As part of its remit, the committee will focus its examination on the experience of business in using Australia’s existing FTAs.

Written submissions from interested individuals and organisations are invited by COB Friday, 26 June 2015. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account. Please do not send submissions directly to the committee’s email inbox.

Guidance on preparing a submission is available on the committee’s website at www.aph.gov.au/jsctig

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Federal budget’s focus on small business welcomed by VECCI

VECCI Chief Executive Mark Stone has welcomed the Federal Budget, which contained a number of positives for Victorian small business including a reduction in the corporate tax rate, a tax discount for unincorporated businesses, asset right-off relief and support for start-ups.

"These measures will lower costs, improve cash flow and help stimulate new investment and jobs growth," Mr Stone said.

VECCI rated the Budget highlights for business to include: 

Jobs and Small Business Package

- The announced 1.5 percentage point company tax cut (to 28.5 per cent) for incorporated small businesses (with annual turnover of less than $2 million) will assist Victorian small businesses to remain competitive, stimulate new investment and drive jobs growth.

- To ensure support is available for all small businesses, unincorporated small businesses (with annual turnover of less than $2 million) will be eligible for a 5 per cent tax discount up to $1,000 a year.

- All small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000.

- Red tape will be reduced as all small business work-related portable electronic devices are fringe benefits tax free.

- Victorian start-ups will be able to immediately deduct professional costs associated with starting a business. A streamlining of business registration processes will make it easier to start a new business.

- Small businesses will also benefit from a new capital gains tax roll over relief when changing their legal structures and the expansion of tax concessions for employee share schemes. Obstacles to crowd sourced equity funding will also be reduced. 

Jobs

- Job creation more broadly has been spurred by budget measure to help Victoria’s unemployed find and move into work, including:

  •      - Stronger support for youth transition to work.
  •      - Simplified work experience arrangements and greater flexibility in the operation of wage payment subsidies.
  •      - A reinvigoration in the Restart wage subsidy to help business employ older workers. 

Trade

- Victorian exporters looking to leverage opportunities created by recent Free Trade Agreements (FTA) with Japan, China and South Korea will welcome the $25 million commitment to establishing a FTA dashboard. We look forward to further details of this measure. 

- The budget demonstrates responsible economic management. The government has identified $10.9 billion in expenditure savings over the next four years and its fiscal strategy will see the budget deficit fall steadily to $6.9 billion by 2018-19.

- Many of the budget measures are consistent with VECCI Small Business Taskforce’s “Small business. Big opportunities” recommendations to support small business growth. 

- As part of the united chamber movement’s national “Small Business. Too Big to Ignore” campaign prior to the 2013 federal election, we commend the Federal Government’s focus on supporting small business growth and entrepreneurship.

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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Finally, good news for SMEs - IPA

 

THE 2015-16 Federal Budget has finally delivered some good news for small businesses according to the Institute of Public Accountants (IPA).

"As promised the Government has delivered a 1.5 percent corporate tax cut for those small businesses which are incorporated and based on the existing $2 million turnover test,” said IPA chief executive officer, Andrew Conway.

“Our concern that only incorporated businesses would see such a tax break has been alleviated with non-incorporated entities receiving a tax discount of 5 percent up to the cap of $1,000.

“This is the first small business tax cut in 13 years, so it is long overdue.

"We are very pleased, therefore, to see the Government adopt the IPA's signature tax policy of reducing the tax rate for small unincorporated businesses.

“Particularly pleasing is the increase in the accelerated depreciation write off threshold of $20,000 (currently $1,000 and previously $6,500 under the previous government), which is of significant assistance to small business cash flow. This will have major flow on effects for the broader economy.

“Other initiatives revealed at tonight’s Budget include significant reductions in red tape through the streamlining business registration initiative; and a special write-off for new start up companies to help with professional expenses. We look forward to more detail on how these measures will be administered.

“All in all, a good package to drive small business productivity and growth; which are key ingredients required right now for Australia’s economic wellbeing and prosperity,” said Mr Conway.

 www.publicaccountants.org.au

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Small business to boom under Federal Budget 2015 but further measures needed to strengthen tax system

THE Australian Retailers Association (ARA), representing the majority of Australia retailers, has welcomed moves in the just-released Federal Budget to get spending under control with further reductions in the public service while maintaining incentives for business and consumers.

ARA Executive Director Russell Zimmerman said the ARA commends the Government on making a path to deficit reduction, introducing new measures to support small business and delivering some stimulus to the hip pocket.

“The ARA is pleased to see the $5.5 billion Jobs and Small Business Package, which will help small businesses and the millions of people they employ. This initiative will see a 1.5 percentage point company tax cut for incorporated businesses with turnover under $2 million, and a 5 percent tax discount, up to $1,000 a year, for other businesses as well as further red tape reduction measures. Small businesses will also see an increased instant asset write off of up to $20,000 for items purchased between Budget night and June 30, 2017.

“The ‘Netflix’ tax (which will see popular overseas media streaming services such as Netflix and Apple charged GST on their downloads) has also been welcomed by retailers.

“While this tax is certainly a positive step, we must now ensure GST collection is extended to low value parcels. It should be just as easy to collect GST from Amazon as it is to collect GST from Netflix and Apple, meaning there is little excuse for the Federal and State Government’s not to move on collecting all GST on products under $1000 from overseas. 

“State Governments are losing billions of dollars in GST revenue which could support teachers and emergency services in our communities. Australian retailers are also suffering from an uneven playing field, and this is costing many local jobs.

“The ARA has been leading the campaign to fix the under $1000 GST loophole for goods bought from overseas and is concerned that tonight’s budget did not offer any specific remedy to this issue. We do, however, commend Assistant Treasurer Josh Frydenberg on his leading position and commitment to solving this issue once and for all.

“It seems the Government has learned from the last year and this budget recognises how the digital economy has changed the business landscape in Australia. What we need to see now is every effort made to strengthen our tax system as well as build consumer confidence with a clear long term plan from Government to support consumers and businesses alike,” 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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Queensland exporter and a trade consultant to discuss Australia’s billion-dollar trade with the Middle East

AN EXPORTER of a Queensland soil conditioner to the Middle East wants to share his ideas on growing trade with the region with federal parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade at a public hearing in Canberra on Wednesday 13 May.

The Trade sub-committee’s inquiry into trade with the Middle East will also hear from trade consultant Cynthia Dearin, who recently returned from the United Arab Emirates, Saudi Arabia and Kuwait as part of an Australian government trade mission.

The owner of the AustraBlend brand soil conditioner, Michael Farrar, sees the Middle East and its need for greater food security as an ideal market for his product. AustraBlend is derived from a minerals’-rich clay and is marketed as “turning desert sand into arable soil” by improving soil health and requiring less water and fertiliser to grow crops and also turf on new golf courses and football pitches in the Gulf states.

Mr Farrar’s submission suggested modifications to government assistance to exporters through the Export Market Development Scheme and by making the Export Finance Insurance Corporation more accessible to smaller businesses pursuing new export opportunities.  

Mr Farrar’s submission also expressed concerns about the coordination and purpose of the different trade missions and visits by federal, state and also regional governments to the Middle East – especially to the popular UAE cities of Dubai and Abu Dhabi.

Given that Australian companies lead the world in fields such as water technology, agricultural production and plant genetics, Dearin & Associates also believe Australia is well placed to capitalise on the region’s growing need for food and water security as it population approaches 400 million by 2050.

Public hearing
Date/Time               Wednesday 13 May 2015, 11:00 am
Location                   Committee Room 1R3, Parliament House, Canberra
Organisations         AustraBlend and Dearin & Associates

Live audio broadcast will be available at www.aph.gov.au/live

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ABS March 2015 retail trade figures released (0.3% increase) – Federal Budget must deliver a solid plan to build business confidence

THE Australian Retailers Association (ARA) said the seasonally adjusted rise (0.3 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 0.7 percent rise in February 2015.

ARA Executive Director Russell Zimmerman said although today’s figures were modest, year on year growth for March is looking strong at 4.4 percent.

“Despite shaky levels of consumer confidence over the past year, retail trade figures continue to increase which is a great sign for the industry.

“March marked the beginning of autumn, with many retailers seeking to clear the last of their summer stock and start promotion of their new winter stock. As a result, department stop retailing (3.8 percent) and clothing, footwear and personal accessory retailing (2.2 percent) enjoyed a boost in sales.

“In seasonally adjusted terms, the ARA was pleased to see rises in Queensland (0.7%), New South Wales (0.3%), Victoria (0.2%), South Australia (0.3%) and Tasmania (0.5%). Unlike in previous months, however, there were three states which experienced falls including Western Australia (-0.3%), the Australian Capital Territory (-0.5%) and the Northern Territory (-0.8%).

“With retailers now looking ahead to the Federal Budget to ensure small business tax cuts are being delivered in order to boost their bottom lines, it is imperative that the Government does all that it can to stimulate business and jobs growth.

“While a reduction in interest rates (announced yesterday by the RBA) is always welcomed, this alone is not enough to ensure the success of the retail industry over the next few months. Low interest rates are acting to support borrowing and spending, however, business growth must still be supported with a solid plan in the upcoming Federal Budget,” Mr Zimmerman said.

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

Department stores (3.8%), Clothing, footwear and personal accessory retailing (2.2%), Food retailing (0.4%), Other retailing (0.1%), Household goods retailing (-1.0%) and Cafes, restaurants and takeaway food services (-1.1%). Total sales (0.3%).

Queensland (0.7%), Tasmania (0.5%), New South Wales (0.3%), South Australia (0.3%), Victoria (0.2%), Western Australia (-0.3%), Australian Capital Territory (-0.5%) and Northern Territory (-0.8%). Total sales (0.3%).

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

Household goods retailing (7.9%), Clothing, footwear and personal accessory retailing (5.9%), Department stores (5.1%), Food retailing (4.0%), Cafes, restaurants and takeaway food services (2.6%) and Other retailing (2.1%). Total sales (4.4%).

South Australia (6.2%), New South Wales (5.0%), Victoria (4.7%), Tasmania (4.5%), Australian Capital Territory (4.1%), Queensland (3.5%), Western Australia (3.3%) and Northern Territory (-0.2%). Total sales (4.4%). 

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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Federal Government taxation and registration changes a win for Victorian small business

VECCI Chief Executive Mark Stone has welcomed the Federal Government’s announced support for start-up businesses and entrepreneurship as part of its Jobs and Small Business package to be included in next week’s federal budget. 

"Victorian new business start-ups will benefit from July 2016 by being able to deduct professional costs associated with starting a business immediately, whereas currently costs must be written off over five years," Mr Stone said.

"Business start-ups will also save time and money during registration, as the current fragmented process will be streamlined through a single online registration site.

"These changes are consistent with VECCI Small Business Taskforce’s “Small business. Big opportunities” recommendations to support small business growth. 

"As part of the united chamber movement’s national “Small Business. Too Big to Ignore” campaign prior to the 2013 federal election, we commend the Federal Government’s focus on small business development."

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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Maritime safety and the future of tourism

Improving Australia’s maritime safety and the future direction of the tourism industry in Australia will be on the agenda when two treaties are examined in a public hearing on Monday.

The Treaties Committee will investigate the International Maritime Organisation’s (IMO) Instrument Implementation Code which provides a mandatory audit scheme aimed at improving maritime safety.

The IMO is the United Nations agency responsible for the safety, security and environmental performance of international shipping. A range of relevant IMO conventions will need to be amended to make sure the Code applies to regulations such as fire safety and management and environmental standards. The audit will help Australia and other countries ensure compliance with IMO regulations. 

Committee Chair, Wyatt Roy MP, said Australia already takes part in the audit scheme on a voluntary basis.

“Making the scheme mandatory will encourage ongoing compliance and help the IMO identify countries that require assistance to meet its standards,” he said.

The committee is also looking at a proposal for Australia to withdraw from the World Tourism Organization (WTO).

The WTO is another United Nations agency which provides an international forum for promoting sustainable and accessible tourism. The proposed withdrawal has been prompted by claims that Australia is not receiving value for money from its membership of the organisation. It has been suggested that Australia would benefit more from membership of bodies that focus on its key tourism markets, such as the APEC Tourism Working Group and the OECD Tourism Committee.

“It is the committee’s responsibility to ensure that treaty actions are in the national interest. We will be carefully examining the arguments for and against this proposal before we make any recommendation to the Government,” Mr Roy said.

Public Hearing:  Monday 11 May, Committee Room 1R5, Parliament House, Canberra
 
11.00am  Australia’s withdrawal from the World Tourism Organisation under Article 35 of the World Tourism Organization Statutes
11.45am  Resolution A.1070 (28): International Maritime Organization (IMO) Instruments Implementation Code and amendments to various IMO treaties
12.30pm  Close

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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CeMAT Australia makes history in Sydney

CeMAT, the global intralogistics and materials handling event, debuted in Australia today at Sydney Olympic Park, attracting hundreds of visitors from around the country and the world to view a wide range of integrated and efficient approaches to materials handling and transport logistics.

CeMAT concluded a successful first day of the three day show with colourful and interactive displays from exhibitors including Hyundai Forklifts, SeaBox International, hrd-Logistic Products, Lonking Holdings, DB Schenker, Knapp, adaptalift and Vivid Industrial, to name only a few.

Mr Wolfgang Pech, Senior Vice President of Deutsche Messe, owners of CeMAT said that the key themes for CeMAT AUSTRALIA are the hot topics for the fast moving and evolving intralogistics industry. Topics such as the Internet of Things and E-Commerce are vital in ensuring the industry adapts integrated solutions and better ways of introducing new technologies to run warehouses smarter, smoother and more efficiently. 

"Our first day at CeMAT AUSTRALIA in Sydney has been a great success and the performance of our exhibitors has well and truly exceeded our expectations.

"Walking around the show, you can see a fantastic line-up of exhibitors featuring technologies, products and system solutions that are ready now for the logistics market in this region and the rest of the world.

"This show represents the impressive and strong commitment of the logistics industry to further bolster their sector in this region with their support of CeMAT in Australia."

CeMAT includes over 100 exhibitors on show for three days, a conference on day one, workshops on day two and industry site visits on day three.

Key speakers from the conference today included Armin Weih, Deputy Managing Director of VDMA (pictured below); Nathan McKenzie, CEO of Speedshield Technologies and Ron Koehler CEO AU/NZ of DB Schenker.

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

CeMAT will run for two more days – Wednesday 6 May and Thursday 7 May 2015.

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Vodafone announced as naming sponsor for National Small Business Summit

THE Council of Small Business Australia (COSBOA) has announced Vodafone as its major sponsor for the National Small Business Summit, an annual premier event focusing on the policies and processes that impact small enterprises.

The Vodafone National Small Business Summit (NSBS) will be held on Thursday 16 and Friday 17 July 2015, at Doltone House Jones Bay Wharf, Sydney. This year’s agenda is set to discuss competition policy review, workplace relations and small business influence on national security.

CEO of COSBOA Peter Strong said Vodafone was a natural fit for this year’s Summit, with both organisations knowing that telecommunications is fundamental to the success of every small business.

“As we all know, speed and cost of communication are key issues for small businesses in Australia. In the context of the current competition review, Vodafone and COSBOA look forward to challenging the status quo in the telecommunications space to ensure the voice of small businesses is heard,” said Mr Strong.

“One of the topics we’re going to address at the Vodafone NSBS is the importance of companies being mobile and using the cloud, something typically only fully utilised by large organisations. Mobile technology feeds into everything we do, with many businesses highlighting this as a high priority for their future growth.”

Vodafone’s General Manager of Business, Andrew Chanmugam, said the company is excited by the partnership with COSBOA for the Vodafone National Small Business Summit.

“We believe it is the perfect platform to discuss the challenges facing Australian small businesses today,” he said.

Mr Chanmugam said that while the convergence of mobile and cloud presents unprecedented opportunities for Australian small businesses, many are not ready for the change.

“Our research shows 82% of small businesses believe exploiting mobile technology will help optimise the way people work, but only 22% believe their current systems deliver the flexibility and responsiveness they need,” he said.

“We are committed to supporting Australian small businesses to become ‘Ready Businesses’ - able to harness the opportunity to deliver better operational agility, better connected employees and better customer engagement.”

The 2015 Summit is once again expected to draw a high profile line-up of guest speakers and attendees, including Vodafone Chief Executive Officer, Inaki Berroeta.  

“Small businesses form a significant part of the Australian economy - employing more than 4.5 million people. The Vodafone National Small Business Summit and COSBOA are committed to ensuring small businesses have the support they need to grow, and are recognised for their contribution and success,” said Mr Strong.

Registrations for Vodafone NSBS open on 15 May.

For more information visit www.nationalsmallbusinesssummit.com.au


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Retailers welcome long-awaited interest rate cut

THE The Australian Retailers Association (ARA) has welcomed The Reserve Bank of Australia’s (RBA) decision to cut interest rates by 25 basis points to an historic low of 2.0 percent today. 

Executive Director Russell Zimmerman said today’s decision will help to provide Australian businesses with much needed relief and is a step toward building higher levels of business and consumer confidence.

“While a reduction in rates is always welcomed, this alone is not enough to stimulate business and jobs growth. Retailers are now looking ahead to the Federal Budget to ensure small business tax cuts are being delivered in order to boost their bottom lines.

“Low interest rates are acting to support borrowing and spending and today’s rate cut is certainly a positive step, however, business growth must still be supported with a solid plan in the upcoming Federal Budget,” 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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