THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed legislation passed in the Senate to implement the Payment Times Reporting Scheme, requiring big businesses to be transparent about their payment times.

Ms Carnell said the Bill represented important progress at a time when it is critical small businesses are paid promptly.  

“Australian small businesses have been hit hard by the COVID crisis so getting paid on time is key to their survival,” Ms Carnell said.

“This Bill will require businesses with turnover of more than $100 million to publish information about their payment policies.

“It requires big businesses to be up front and honest about the time it takes to pay their small business suppliers.

“Importantly, the legislation introduced today will apply to around 3,000 Australian large businesses, including foreign companies that carry on an enterprise in Australia along with certain government enterprises.

“It also defines the small business as those that have a turnover of less than $10 million per year, which covers 99 percent of businesses.

“My office will be invoking the powers we have to investigate any reports of big businesses failing to live up to the information provided on this register once it is implemented.

“We support the Payment Times Reporting Scheme as passed by the Senate, however Labor’s ‘failsafe mechanism’ amendment would have strengthened the Bill.

“The proposed failsafe mechanism would have allowed the regulator to force big businesses to pay their small business suppliers in 30 days or face hefty fines, but the amendment was unsuccessful.

“In reality, the Payment Times Reporting Scheme is a step in the right direction, but it won’t solve the problem of late payment times on its own.

“Legislation requiring SMEs to be paid in 30 days is the only way to drive meaningful cultural change in business payment performance across the economy.

“Cash flow is king for small businesses and when small businesses are paid on time the entire economy benefits.”

www.asbfeo.gov.au

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A MOUNT DRUITT tax professional has been sentenced at the Sydney District Court to one year and eight months jail today, having pleaded guilty to dishonestly causing a loss to the Commonwealth of nearly $180,000 by lodging false income tax returns and amendments without his clients’ knowledge. He was also ordered to pay $179,826 in reparation.

Hussain Nazeer, a formerly registered Business Activity Statement (BAS) agent, lodged 22 fraudulent income tax returns for 14 of his clients between 2010 and 2013. This resulted in $23,000 of refunds that he kept for himself. Mr Nazeer’s clients provided honest information about their income and deductions, but he submitted different information in their returns.

Mr Nazeer also lodged 108 false tax return amendments on behalf of 37 taxpayers without their knowledge. His false claims, which mostly related to car and medical expenses, resulted in an extra $156,000 in refunds that went straight to his bank account.

Assistant Commissioner Adam Kendrick welcomed the sentence handed down today.

“Tax and BAS agents play a vital role in contributing to and protecting the integrity of the Australian tax and super systems. The majority of registered agents do the right thing, but unfortunately there are some agents who take advantage of their trusted position for financial benefit,” Mr Kendrick said.

The ATO has a program dedicated to identifying and addressing agents whose behaviour has an immediate and ongoing threat to the integrity of the tax and super systems, their clients, and the wider Australian community. 

“As demonstrated in today’s case, even registered tax professionals can be dishonest and take advantage of their clients,” Mr Kendrick said. "That is why it’s important for the ATO to maintain the integrity of the tax profession and weed out those who try to undermine their trusted position.

“Mr Nazeer’s actions showed a complete disregard for not only the law, but also his clients’ trust by lodging fraudulent tax returns and amendments in their names,” Mr Kendrick said.

Mr Nazeer’s registration with the Tax Practitioners Board (TPB) was ceased in April 2016. 

People concerned about the conduct of a tax practitioner can report them to the TPB at tpb.gov.au/make-complaint.

Anonymous reporting of possible tax evasion and crime activities can be reported to the ATO via the app or by calling 1800 060 062. 

This matter was prosecuted by the Commonwealth Director of Public Prosecutions.

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DIPLOMATIC representatives from Samoa, the Solomon Islands, Papua New Guinea, the Kingdom of Tonga, New Caledonia, Vanuatu, New Zealand, and Kiribati will meet today with members of the Joint Standing Committee on Foreign Affairs, Defence and Trade for a roundtable discussion on the topics of Pacific trade, aid and defence.

The roundtable connects several inquiries from sub-committees of the Parliament’s Foreign Affairs, Defence and Trade Committee.

Members of the sub-committees will be seeking the views of participants on the Australian Government’s Pacific Step-Up, infrastructure development, regional security, seasonal workers programs, a new development-centred trade agreement, the Pacific Agreement on Closer Economic Relations Plus (PACER Plus) and the potential of a “Pacific bubble” for easier travel and tourism between the island nations and Australia and New Zealand, in response to the COVID-19 shutdowns.

Further details about the about the inquiries, including terms of reference, details on how to contribute a submission and, when available, details of public hearings and roundtable discussions, can be obtained from the Committee’s website.

Public hearing details

Date: Friday 4 September 2020
Time: 9am to 12:30pm
Location: Committee Room IR1, Parliament House, Canberra

The hearing will be audio streamed live at aph.gov.au/live.

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SUPER FUNDS MTAA Super and Tasplan have appointed Ross Barry as chief investment officer ahead of their merger next year.

With over 25 years experience, Dr Barry is a pioneer in institutional investing in Australia and is well known in the super industry as a specialist in private market investing and a leading proponent of active asset ownership. He was most recently the senior investment leader for First State Super.

Dr Barry will join MTAA Super on September 28, 2020. His appointment completes the C-suite team that will lead the combined fund after March 31, 2021.

The full C-suite group includes CEO Leeanne Turner; chief operations officer Kathleen Crawford; CIO Ross Barry; chief strategy officer Ningning Lyons; chief of people and culture Robyn Judd; chief of governance risk and compliance Amy Ward; and chief finance officer Grace Angeles.

Current MTAA Super executive manager for investments Phil Brown will assist with the handover before stepping down in mid-October after 15 years of service. More MTAA Super and Tasplan executives will exit following completion of the merger.

Departing from MTAA Super will be deputy CEO Michael Sykes; executive manager for operations Chris Porter; and executive manager of marketing, communications, education and advice.Michael Irving, 

Departing from Tasplan will be CEO Wayne Davy; COO and deputy CEO Nick Connor; executive manager for trategy Keryn Welch; chief risk officer Greg Hanigan; and acting CIO Dave Stuart.

CEO designate of the new merged entity, Leeanne Turner said, “On behalf of our respective boards, staff, and members, I sincerely thank all the executives for their dedication and commitment to the funds. They have been instrumental in driving this merger and have been integral to our success for many years leading up to this. I wish them all the best with their future endeavours.

“We are excited about the future. This merger will allow us to provide the personal customer service benefits of a smaller fund while harnessing the benefits of scale a larger fund can bring.”

Chair of Tasplan, Naomi Edwards said the focus was now on completing the merger with minimal disruption to members and employers.

“To date, the merger process has been very smooth, and we want to keep it that way," Ms Edwards said. "So, having our C- suite structure in place early is critical. I’m very excited about the team we have put together and I have no doubt they will help us build a fund that our members can be proud of.”

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