THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the Federal Government’s extension of temporary insolvency and bankruptcy protections, to support struggling small businesses impacted by the COVID crisis.

Regulations reducing the threat of creditors taking action against a small businesses impacted by trading restrictions have now been extended to December 31, 2020.

The changes also extend the temporary relief for directors from any personal liability for trading while insolvent.

“These necessary measures give otherwise viable small businesses more time to recover, preventing a wave of unnecessary insolvencies,” Ms Carnell said.

“While we support this temporary relief for financially distressed businesses, there will also be a number of zombie businesses kept artificially afloat as a consequence.

“ASIC data shows insolvencies are tracking at close to 50 percent below 2019 levels, which goes to show the extent to which government stimulus and protection measures are keeping businesses on life support, including businesses that have not been viable for some time.   

“Deloitte Access Economics modelling estimates about 240,000 small businesses are at risk of failure, highlighting the critical need for small businesses to sit down with their trusted financial adviser for a viability assessment.

“My office continues to recommend the establishment of a small business viability voucher program, where small business owners facing financial stress can obtain a voucher valued up to $5,000 to access tailored advice on the state of their business," Ms Carnell said.

“The voucher would ensure small businesses have access to the expertise they need to judge business viability.

“Unfortunately small businesses with cash flow issues, compounded by falling revenue, may not seek out professional advice because it’s deemed to be unaffordable. This could prove to be devastating for the business owner and their family, down the line.

“We know the sooner a small business owner experiencing financial stress seeks assistance from an accredited professional, the better the outcome.”

www.asbfeo.gov.au

ends

THE Parliamentary Joint Committee on Intelligence and Security has commenced a statutory review of the operation of Part 14 of the Telecommunications Act 1997.

The review will look at Part 14 of the Act, to the extent that it was amended by the Telecommunications and Other Legislation Amendment Act 2017—Telecommunications Sector Security Reforms.

The reforms commenced on September 18, 2018 and established a regulatory framework to manage the national security risks of espionage, sabotage and foreign interference to Australia’s telecommunications networks and facilities. Key elements of the reforms are set out on the Department of Home Affairs’ webpage.

The Committee requests submissions to the inquiry by Friday, November 27, 2020.

Prospective submitters are advised that any submission to the Committee’s inquiry must be prepared solely for the inquiry and should not be published prior to being accepted by the Committee.

Further information about making a submission to a committee inquiry can be found at the following link.

Further information on the inquiry can be obtained from the Committee’s website.

ends

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has received a letter from the Minister for Home Affairs referring an inquiry into foreign interference in Australia’s universities, publicly funded research agencies and competitive research grants agencies with a requested reporting date of July 2021.

The PJCIS recognises that this is a complex topic, and, in order to appropriately consider the issues before it, the Committee will seek private briefings from relevant agencies with a view to finalising the terms of reference, in consultation with the Minister for Home Affairs, and launch the inquiry later this month.

Chair, Andrew Hastie MP, said, "The Committee supports this inquiry. We will now take the opportunity to engage the relevant agencies as we refine the terms of reference. This inquiry is about transparency and accountability, so it’s important that we ask the right questions.”

ends

THE Queensland Futures Institute (QFI) has welcomed yesterday's announcement from the Queensland Government regarding the formation of a $500 million Backing Queensland Business Investment Fund.

In April this year, QFI presented the State Government with a set of key recommendations from 'What Makes Businesses Start, Grow and Stay in Queensland', an evidence-based study into the factors driving business investment in Queensland.

One of the primary findings recommended "the State Government establish an investment fund, with appropriate criteria, to help existing successful businesses expand in Queensland, as a relatively low-risk way of creating jobs".

Queensland Treasurer Cameron Dick said, "The fund will support good quality Queensland businesses that need capital to create jobs."

A QFI spokesperson said the 'think-tank' encouraged the use of evidence-based research to test current thinking, boundaries and policies in order to improve economic and social outcomes for all Queenslanders.

www.qldfutures.com.au

ends