Business News Releases

The future is digital for regional businesses with improved internet

THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson said small businesses in regional and remote areas of Australia now have more reasons to digitise, with NBN Co announcing expanded coverage and lower wholesale prices.

NBN Co said its Business Satellite Service has been improved to cover Australia’s mainland and large surrounding islands, with wholesale prices significantly reduced.

“Fast and reliable internet is an essential service to most small businesses and especially those in regional and remote part of the country,” Mr Billson said.

“Equally, it’s an incentive to small businesses to improve their online presence, particularly at a time when more consumers are shopping online.

“The latest data from the Australian Bureau of Statistics shows online sales rose by more than 70 percent in December compared to the same period a year ago.

“A survey of more than 1000 Australians conducted on behalf of NBN CO that 70% have been consciously supporting local businesses online. However, it also revealed that two-thirds of respondents were restricted by the limited digital presence of those businesses," Mr Billson said.

“Many small businesses have adopted better use of mobile and internet technologies as a result of the COVID crisis and we want to see that trend continue.

“The reality is that digitisation is now crucial to being truly competitive. That means everything from having a website, to being e-commerce enabled and targeting customers through social media platforms," he said.

“SMEs with advanced levels of digital engagement are 50 percent more likely to grow revenue and earn 60 percent more revenue per person, according to MYOB research.

“There is every reason for small businesses to embrace digitisation and plenty of free online resources which can be easily accessed via My Business Health.”  

www.asbfeo.gov.au

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AEMO: There will be no gas shortfall

A NEW REPORT FROM the Australian Energy Market Operator (AEMO) forecasts there will be no gas shortfall in the coming years, putting another major dent in the Federal Government’s plans to support new gas projects.

The Gas Statement of Opportunities suggests that the Port Kembla import terminal will ease supply concerns, and highlights how measures such as electrification of homes and businesses are further reducing gas demand. It comes after AEMO found Australia does not need any new gas

“The Morrison Government’s ‘gas-fired recovery’ fantasy is just that, an expensive, dangerous, and unnecessary fantasy,” Climate Council senior researcher, Tim Baxter said.

“There will be no shortfall, and in the electricity sector, gas is already being out-competed by clean, affordable renewable energy. In the next few years, electrification and efficiency will also lead to a decline in gas use in other areas such as manufacturing and industry,” Mr Baxter said.

A recent Climate Council analysis found that gas generation in Australia’s largest electricity grid fell by 19 percent in 2020 while solar and wind had a record year despite the COVID-19 pandemic.

“Gas is a fossil fuel driving climate change. We’ve just been hit with devastating floods, which is the latest in a line of extreme weather events exacerbated by climate change. We’ve also experienced record drought, the Black Summer bushfires and scorching heatwaves,” Mr Baxter said. 

“Gas is also driving up power prices, and prices for our manufacturing industries. It has no role to play in our economic recovery.

“As the sunniest and one of the windiest places on the planet, Australia should be cashing in on its renewable advantage, and in doing so, rapidly reducing greenhouse gas emissions. It’s a win-win,” he said. 

About the Climate Council

The Climate Council is Australia’s community-funded climate change communications organisation. It provides authoritative, expert and evidence-based advice on climate change to journalists, policymakers, and the wider Australian community. www.climatecouncil.org.au  Social media: facebook.com/climatecouncil and twitter.com/climatecouncil

 

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How to get a better deal for Australia under the Business Innovation and Investment Program

INVESTMENT manager Atlas Advisors Australia is calling for better use of migrant investment to fill critical gaps in Australian venture capital and industry.

The proposal is part of a submission to the Department of Home Affairs Discussion Paper on the Complying Investment Framework (CIF) for the Business Innovation and Investment Program (BIIP).

Executive chairman of Atlas Advisors Australia, Guy Hedley said early/seed-stage venture capital had taken a heavy and serious hit in recent years. 

Statistics reveal a 45 percent decline in the number of early-stage deals in Australia.

“This has dire ramifications for the medium and longer-term health of Australia’s economy, future jobs and industry growth,” Mr Hedley said.

“It also affects our global competitiveness when it comes to patents and intellectual property.”

Mr Hedley said the Significant Investor Visa program should be used to plug holes in critically needed venture capital funds.

The Significant Investor Visa currently directs more funds towards well-developed markets such as emerging listed companies, property and bonds, than it does to venture capital. This is despite venture capital funding better stimulating the growth of the economy because of the shortages in seed-stage venture capital start-up funding.

Mr Hedley said the allocation towards venture capital should be increased from 10 percent to 20 percent, while the mandatory investment period should be extended from four years to five years.

“Increasing the allocation to venture capital would provide more for early-stage and seed investment deals,” Mr Hedley said.

“This would materially increase jobs, wealth, industry and patent creation – making it a far better deal for Australia.”

Chief executive officer of Uniseed, Australia’s longest running university venture fund, Peter Devine said the Business Innovation and Investment Program was integral to supporting the commercialisation and translation of university research in recent years.

Dr Devine said since starting in late 2000, Uniseed had seeded and supported 57 start-ups borne out of Australian research organisations. These now employed well over 600 people.

Uniseed first partnered with Atlas Advisors Australia in 2018, and later through Stoic Venture Capital. They co-invested in 17 early-stage companies originating from Australian research organisations in drug development, medical devices, agricultural robotics and other technologies, and these companies have gone on to raise more than $300 million in investment and grant funding.

Dr Devine said funds allocated to venture capital from the Business Innovation and Investment Program had a huge impact, providing early-seed funding for university spin-off companies, and with funds participating in subsequent funding rounds, this had assisted in raising funds from other investors in later rounds.

Increasing the allocation towards venture capital under the Business Innovation and Investment Program could fill gaps in desperately needed funding for universities to commercialise more vital research.

It also accords with the Australian Government’s objective to increase the commercialisation of university research using a new model to be introduced by the end of the year.

“Despite record venture capital raisings in 2020, nearly all venture capital funds operating in Australia do not invest in technologies at seed-stage in research organisations,” Dr Devine said.

“At the time of invention and subsequent patenting, nearly all technologies are too early to interest external companies or most investors.

“These technologies require additional seed funding to get to a stage where “they become investible” so other investors are interested, colloquially known as getting across the ‘valley of death’.”

Statistics

These statistics show that the number of early-stage funding deals in Australia has declined significantly from around:

  • · $320 million in 2016-17
  • · $270 million 2017-18
  • · $120 million in 2018-19

 

About Atlas Advisors Australia

Atlas Advisors Australia is a leading funds manager and investment advisory business, operating between China and Australia offering a wide range of financial services and wealth management solutions. With operations in Sydney, Melbourne in Australia and Hong Kong SAR and Shanghai in China, Atlas is able to support investors in all China and Australia locations. Atlas Advisors Australia AFOF is the major limited partner in Stoic Venture Capital. www.atlasadvisors.com.au

About Uniseed

Formed in 2000, Uniseed is Australia’s longest running university commercialisation fund. Uniseed has supported a number of highly successful companies arising from partner research organisations, such as the University of Melbourne’s Fibrotech (sold to Shire in 2014) and Hatchtech (sold to Dr Reddy’s Laboratories in 2015); the University of Queensland’s Spinifex (sold to Novartis in 2015); and the University of NSW’s Smart Sparrow (sold to Pearson in 2019) and Exonate (major research collaboration with J&J announced in 2020).  Uniseed is a mutual fund, owned by research organisations, for research organisations. The fund facilitates the commercialisation of its research partners’ most promising intellectual property and secures targeted investment in resulting products and technologies. www.uniseed.com

Public hearing on Myanmar set for April 13

THE military coup in Myanmar, and the escalating violence and rising death toll, are of growing concern to Australia, according to the Federal Government.

As a longstanding supporter of Myanmar’s democratic transition, recent developments are deeply troubling, both for Myanmar’s people and for the region more broadly.

The Foreign Affairs and Aid Subcommittee of the Joint Standing Committee on Foreign Affairs and Trade intends to hold a public hearing on Tuesday April 13 in Canberra to examine recent developments in Myanmar in greater depth, and to "hear from concerned sectors of Australian society about the troubling direction Myanmar has taken in recent weeks".

“The evolving situation in Myanmar is of acute concern to a large number of Australians,” according to chair of the subcommittee Dave Sharma MP.

“The pathway ahead remains fluid and uncertain, and we are keen to hear from experts and community organisations in Australia about how Australia can support a return to democratic rule in Myanmar as soon as possible, and the protection of fundamental human rights.”

Deputy Chair Julian Hill MP said, “The situation is heartbreaking. Over 250 people have died in the escalating violence, and Australia must also provide support to diaspora communities living here who are desperately worried about family and friends. 

“Australia needs to work with like-minded countries in our region to send a strong message that the violence must stop, and democracy must be returned quickly. The subcommittee’s inquiry and focus on Myanmar is a fully bipartisan endeavour.”

The subcommittee said it looked forward to hearing evidence from government departments, diaspora groups, thinktanks and human rights organisations on these issues.

Arrangements for the hearing:

People who want to participate in the hearing are asked to get in touch as soon as possible before 6 April. A short email (up to 150 words) is the best method, describing your interest or views on any of the below points.

  1. Why did the military coup in Myanmar occur?
  2. How long is military rule in Myanmar likely to last?
  3. What have been the regional reactions to the coup in Myanmar?
  4. What are the implications for Australians in Myanmar?
  5. What are the implications for Australians doing business in Myanmar?
  6. What is the impact on bilateral cooperation, such as military, human rights and international development support?
  7. What can or should Australia do to support the return to stability and democracy?

The committee will review the expressions of interest, and prepare a program which can best accommodate all views in the limited time available. The final program will include more details including start and finish times for the hearing.

More detailed written submissions responses to the questions or longer submissions are also welcome, but detailed responses are not needed in order to join the discussions.

One hearing is planned so far, although there may be opportunities for future engagement.

The hearing will be broadcast live, and a transcript will be published afterwards. Those who want involvement to be confidential, should let the committee know and it will make sure those views can be included.

Arrangements can be made for limited numbers to join the meeting in person (COVID-restrictions apply in Parliament House), or by teleconference.

More details on arrangements for the hearing will continue to be available from the committee’s website when they are finalised.

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PSA: NSW budget cuts force ICAC to beg for funding every year

INDEPENDENT funding for ICAC is needed now, according to the Public Service Association, so the corruption watchdog can focus on its investigations rather than trying find annual budget savings.

"Every year budgetary pressure sees ICAC forced to go cap in hand to the Premier for supplementary funding," PSA general secretary Stewart Little said.

"In 2021, the fearless investigator is being asked to find $3.4 million in savings for the next four years.

"Without this cash it is hamstrung in its ability to sniff out corruption or run multiple investigations. The Berejiklian government is whittling it down to its smallest size in three decades."

The latest budget pressure comes after ICAC was forced to find $4.7 million in savings in 2019/20, and $2.9 million in 2018/2019.

"Independent and consistent funding, which is allocated at arm's length from the government, is needed urgently. Keeping NSW corruption free shouldn't be treated as a line item in the budget, it is a core service we need," Mr Little said.

"ICAC is the ultimate check on government. Funding independence removes any threat of pressure from those ICAC is investigating."

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Ombudsman praises ATO small business independent review service

THE Australian Small Business and Family Enterprise Ombudsman, Bruce Billson has welcomed the ATO’s decision to turn its small business independent review service into a permanent offering, following a highly successful pilot program.

Mr Billson said the ATO’s now permanent independent review service provides small businesses with a timely, free and fair dispute resolution pathway.

“I congratulate the ATO for taking a proactive approach with this commitment to help resolve small business tax disputes,” Mr Billson said.

“The ATO has acted quickly to implement a key recommendation in our recently released report: A tax system that works for small business which will help support small businesses when they disagree with an ATO audit position.

“This ATO decision is a substantial step in the right direction in ensuring small businesses are given a fair go," he said.

“More than 180 small businesses who participated in the pilot program reported the process was fair and independent, irrespective of the outcome, so we welcome the ATO’s move to lock in this service permanently.

“The ATO’s small business independent review service is a crucial part of ASBFEO’s vision of a tax system that works for the small business sector, so businesses can achieve greater productivity, return to profitability and grow employment.

“This ATO service marks an important contribution to a supportive environment which is needed now more than ever as small businesses recover from an incredibly tough 12 months.”

Small businesses engaged in a tax dispute are encouraged to contact ASBFEO for assistance on 1300 650 460 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

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Keeping the lights on: Committee to examine future energy generation and storage

THE House of Representatives Standing Committee on the Environment and Energy today launched a new inquiry into dispatchable energy generation and storage capability in Australia. 

Committee chair, Ted O’Brien MP said, “Australia’s energy system is changing. We are seeing rapid growth in renewable energy and the retirement of thermal energy capabilities which creates a risk of unintended consequences.

“As older power stations leave the market, we can’t rely on intermittent renewables alone to keep the lights on and the costs down,” Mr O’Brien said.

“We need sufficient dispatchable generation capacity to balance renewables, so the electricity system is affordable, reliable and secure. Our new inquiry will tackle this generational challenge by assessing both sides of the equation - generation and storage.

“It’s not just about how the system works today but how it might work in the future, so we’ll assess the future need for dispatchability and the potential for different types of technology.

“We will learn from what’s happening elsewhere in the world to address this challenge while exploring opportunities for Australia to export dispatchable zero-emissions power to others.

“We’re at a turning point in how our electricity market operates and how we respond will be a major determinant of our strength as a nation well into the future. We have to get it right.”

Further information, including the inquiry’s full terms of reference, is available on its website.

The committee will accept submissions addressing the terms of reference until May 7, 2021.

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ATO affirms importance of independent review service for small businesses to help resolve disputes

THE Australian Taxation Office (ATO) has today affirmed its commitment to assisting small businesses resolve their taxation disputes. Following a successful multi-year pilot, the ATO’s small business independent review service will be offered permanently as a dispute resolution option for eligible small businesses.

The ATO’s service aims to ensure eligible small businesses have an additional opportunity to resolve a dispute with the ATO in a cost-effective and time-efficient way.

Since the pilot program started in 2018, more than 1,200 small businesses have been offered the service and more than 180 small businesses have taken up the ATO’s offer.

ATO Deputy Commissioner Jeremy Geale said the service was all about ensuring small businesses are given the opportunity to achieve an independent, fast, free, and fair resolution when they disagree with the ATO’s audit position.

“Independence is critical when handling a dispute, so we ensure each and every independent review is done by an officer from a different part of the ATO who was not involved in the original audit," Mr Geale said.

“Small businesses who participated in our pilot told us they found the process to be fair and independent, irrespective of the independent review outcome, so this is a great result, and is a big part of why we are locking this service in permanently.”

Mr Geale clarified that taxpayers could request in-house facilitation at any stage of a dispute with the ATO and that the independent review occurs prior to the ATO issuing an amended assessment and any resulting debt being raised.

Australia is the only jurisdiction that provides so many dispute resolution options to small business taxpayers, according to the ATO, allowing them to be heard at audit, independent review, objection, Court or Tribunal, with appeal rights and Tribunal funding.

The ATO’s decision to transition the pilot to business as usual is consistent with recent recommendations made by the Australian Small Business and Family Enterprise Ombudsman.

The ATO’s small business independent review service is available to eligible small businesses in addition to other dispute options, for example, lodging an objection, in-house facilitation, or by taking the matter up with the Inspector General of Taxation and Taxation Ombudsman or the Australian Small Business and Family Enterprise Ombudsman.

The service is available for eligible small businesses with an annual turnover of less than $10 million in relation to disputes about income tax, GST, excise, luxury car tax, wine equalisation tax, and fuel tax credits. Disputes about employer obligations like superannuation and fringe benefits tax are not eligible for the independent review service.

More information about the ATO’s independent review service including how to request a review and eligibility criteria is available on the ATO’s website.

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National disability campaign #SeeME launches to an emotional response

ON TUESDAY, STEPS Employment Solutions launched their highly anticipated #SeeME campaign launch event.

The national campaign, which features a video series, explores the realities of nine extraordinary individuals who face barriers to employment and highlights the importance of concentrating on the abilities of job seekers. This idea is embodied in the event’s tagline of “employMYability”.

The event featured the first screening of all nine participants’ powerful stories, and also saw the nine participants and other speakers share their experience and insights with the audience.

The video series garnered emotional responses from the audience, as well as from the participants themselves.

Carmel Crouch, managing director of STEPS, was also present at the event and shared the importance of campaigns like #SeeME in changing the landscape for young Australians with barriers to gaining employment.

“STEPS Employment Solutions and the idea of giving equal job opportunities to young people with disabilities was what initially began what is now known as STEPS Group Australia in 1989,” Ms Crouch said.

Kerry Staines, the chief executive officer of STEPS Group Australia, spoke at the event and shared her great confidence in what campaigns like #SeeME could achieve.

“This campaign really embodies our core message; that young adults with disabilities, mental health issues, or any other barriers have so much to offer in the workspace,” Ms Staines said.

“Our nine participants are such a small part of such a large group of amazing, qualified, and deserving people.

“I really hope that this campaign helps more employers see that good employees don’t just come in one form.”

While the campaign’s launch was a great success, each participant has far more insight and experience that they look forward to sharing with the Australian community.

“It has been a great opportunity to share what it’s like to try to overcome barriers in employment,” one of the campaign’s participants, Jessica, said.  

“Hopefully, we can encourage more conversations about those barriers and the strengths of diversity.

“Inclusive workspaces start in the hiring process so working toward better knowledge and processes will surely highlight our abilities.”

https://seeme.stepsemploymentsolutions.com.au/

Participants stories are on the STEPS Employment Solutions YouTube channel at https://youtu.be/TUXDjcGdjeg

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Economics Committee to scrutinise APRA and ASIC on financial stability and governance

WITH Australia’s economy starting to recover from the impacts of COVID-19, this Monday (March 29) the House Economics Committee will gather key financial regulation bodies to discuss consumer protection, responsible lending, and other issues.

Witnesses from the Australian Prudential Regulation Authority and Australian Securities and Investments Commission will appear at the hearing.

Committee chair Tim Wilson said, "The COVID-19 pandemic has created unprecedented disruption and uncertainty in the financial sector.

"As Australia moves towards our 'post COVID normal', it is essential to maintain strong prudential regulation; promote competition; and ensure fair and transparent dealings to safeguard financial stability and consumer trust in the financial sector.

‘After the chair of ASIC stepped aside due to allegations of misuse of taxpayer funds during our last hearing, the committee is particularly interested in scrutinising ASIC’s response to the Treasury's review of ASIC governance, released in January this year," Mr Wilson said.

"The committee is also interested in hearing how APRA is promoting strong prudential regulation and operational resilience amongst financial institutions, including super funds."

Public hearing details

Date: Monday, 29 March 2021
Time: 9am to 1.30pm
Venue: Main Committee Room, Parliament House, Canberra, and via videoconference

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

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Aussie logs for Aussie jobs report published

THE Australian Parliament’s Agriculture and Water Resources Committee has published its report Aussie logs for Aussie jobs: inquiry into timber supply chain constraints in the Australian plantation sector.

The committee’s inquiry considered challenges preventing growth in Australia’s timber industry and investigated potential solutions to current issues.

The committee chair, Rick Wilson MP, noted the ongoing decline in the extent of the domestic plantation estate, and stated that "more needs to be done if the timber industry is to flourish into the future".

"From greater investment in forestry research and development capabilities, farm forestry, and the exciting new possibilities presented by carbon storage initiatives, the industry is ripe for innovation and growth. With the appropriate policy settings, the plantation industry may once again have the potential to expand, and indeed thrive." Mr Wilson said.

Mr Wilson also highlighted the importance of encouraging greater transparency in softwood pricing. The committee recommended the Australian Government support stakeholders to develop a voluntary code of conduct for the timber industry to facilitate long-term supply contracts between producers and processors for the mutual benefit of both.

Mr Wilson said, "It is anticipated that such an arrangement would better support the growth of an efficient domestic processing sector, while reducing the risks associated with reliance on export markets for plantation owners."

The committee’s report can be found at the inquiry website.

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