THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said the government’s extension to the Coronavirus SME Guarantee Scheme would allow small businesses to access the working capital and investment funds they need.

The second phase of the scheme comes into effect from October 1, 2020, and has been expanded to offer loans up to $1 million for a maximum term of five years.

Under the scheme, the government, in partnership with 44 approved lenders, will guarantee 50 percent of new, unsecured loans to SMEs. 

“We support this next phase of the Coronavirus SME Loan Guarantee Scheme, which aims to help businesses emerge from hibernation and adapt to COVID-safe protocols so they can continue to operate and ultimately grow,” Ms Carnell said.

“Crucially, the extended terms of the scheme provides small businesses more affordable credit over a longer period so they can invest in their future.”

Small businesses with a turnover of up to $50 million can apply for the loans between October 1, 2020 and June 30, 2021.

“These loans are unsecured and that means you don’t have to provide your home as security for the loan,” Ms Carnell said.

“The new loan will have a maximum term of five years – up from three. This time round, lenders have discretion to offer a loan repayment holiday and interest accrued over that period will be spread over the course of the loan. 

“While this is a good option for viable small businesses that have the capacity to grow, it is always a good idea to seek advice from a trusted, accredited financial advisor before entering into a loan.”

www.asbfeo.gov.au

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FOLLOWING AN AUDIT and subsequent referral by the Australian Taxation Office (ATO), the Tax Practitioners Board (TPB) undertook an extensive investigation resulting in the registration of Gold-Coast based tax agent Edward Mark Purnell-Webb and his business Superannuation Administration Specialists (QLD) Pty Ltd being terminated and both were banned for four years.

Mr Purnell-Webb had lodged more than 170 returns for self-managed superannuation fund (SMSF) clients where he claimed the funds had been independently audited, but the investigation found no audit had been conducted. Therefore, the TPB considered that Mr Purnell-Webb had undermined the superannuation system and was no longer trustworthy to perform the functions of a registered tax agent.

Speaking about the case, TPB chair Ian Klug said, "Mr Purnell-Well has shown himself to be a risk to consumers. The TPB has an important role in consumer protection and maintaining the integrity of the tax practitioner profession. Misconduct of this kind undermines the integrity of the entire SMSF regulatory regime.

"This decision serves as a warning to other tax practitioners who may be thinking of engaging in this kind of egregious behaviour." 

In a separate investigation, the TPB has also reviewed 74 tax agents referred to them by the ATO for potentially reporting incorrect SMSF Auditor Numbers.

ATO Deputy Commissioner John Ford said, "Approved SMSF auditors have a critical role in helping to maintain the health and integrity of the SMSF sector through the annual audit of each SMSF.

"SMSF trustees deserve to have confidence in the integrity of tax professionals. They expect them to accurately report their information to the ATO. By disregarding the strict rules, they are not only breaking the law but they are also letting down trustees who have entrusted their affairs to be handled professionally," Mr Ford said.  

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_au, Facebook and LinkedIn

LOCAL BUSINESSES across Queensland are receiving a significant financial boost from resources companies with a 16 percent increase in local spending over 12 months.

QRC chief executive Ian Macfarlane said the industry’s latest Local Content report found buying locally was a win-win for the industry and local communities.

“Expenditure from the resources sector with Queensland suppliers jumped from $19.3 billion in 2017-18 to $22.4 billion in 2018-19 which is the highest investment recorded in four years,” Mr Macfarlane said.

“Almost $70 million was invested with Indigenous businesses which is a 72 percent increase on the $40.5 million in 2017-18. The total proportion of expenditure with Queensland suppliers has increased to 71 percent of all spending ($31.5 billion). 

“This means jobs now and on-going jobs for regional Queenslanders and companies are benefiting from the significant increase in capabilities from the well-established supply hubs in Mackay, Rockhampton, Gladstone and Toowoomba along with south east Queensland," Mr Macfarlane said.

“Our sector’s economic reach is far greater than the communities in which we operate with Mackay and Brisbane accounting for the two largest local government areas for spending and neither have a mine or a gas well.

“Queensland’s resources sector understands small businesses are the lifeblood of regional economies and they will be a key part in powering our State’s jobs growth post COVID-19.

“By spending locally the resources sector promotes the long-term sustainability of local economies and builds partnerships with communities through mutually beneficial relationships.

“In the last 10 years (2009-10) the sector has spent $232 billion with local businesses in Queensland.

“A clear message from this year’s case studies is buying locally is not just good business, it’s often a fast-track to innovation through the state’s growing Mining, Equipment, Technology and Services (METS) sector.”

Mr Macfarlane said the results were calculated before the impacts of COVID-19 and if industry was to continue to spend with local businesses it needed greater certainty around investment.

“The resources sector needs the government to endorse our recovery plan to reduce red tape, streamline project assessment and approval processes and provide royalty stability over 10 years," he said. "The QRC’s comprehensive 40-point plan has been presented to the government’s Queensland Industry Recovery Alliance and all members of parliament.” 

www.qrc.org,au 

Link to QRC's recovery plan

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FOLLOWING the latest announcements regarding investment into the current and future Australian workforce, the Australian Information Industry Association (AIIA) has welcomed the Morrison Government’s $2 billion 'JobTrainer’ plan to help school-leavers and the unemployed learn new skills.

AIIA CEO, Ron Gauci said, "The AIIA supports micro-credentialing courses and we encourage school leavers and young people to attain skills in IT and have a long and successful career in an industry where jobs are in demand - particularly key technical areas such as artificial intelligence & data, cloud computing, cyber security, automation and internet of things."

He said the AIIA also recognised the importance of gender imbalance that currently exists in STEM. As detailed in a recent set of recommendations put to Australian Government as part of the AIIA White Paper titled Building Australia’s Digital Future in a Post-COVID World, he said, the issue starts in primary learning and continues through to university where almost 80 percent of males complete a STEM qualification compared with 20 percent of women.

"The AIIA are supportive in encouraging opportunities for young women and look forward to having discussions with the National Skills Commission on this matter," Mr Gauci said.

The AIIA White Paper also made the following additional recommendations to government regarding skills shortages. AIIA is asking the government and National Skills Commission to consider:

• Updating the current JobKeeper payment scheme with a portion of the current funding allocated to training credits for employers to reskill their workforce.
• Implementing a nationally recognised lifelong learning framework with skills passport to capture digital skills across VET, University and micro-credential certifications.
• Issuing government credit to employees to promote lifelong learning and up-skilling.

Jointly funded by all levels of government, $1billion,will go towards 430,000 new training courses that meet the needs identified by the National Skills Commission. This will be led in consultation with the states and territories.

The AIIA said the ICT industry needs to be a part of these crucial conversations.

“The AIIA supports the Prime Minister’s JobTrainer announcement and are encouraged to lead an increased profile of the available IT training packages - in turn, reducing barriers of entry for potential workers into the digital economy," Mr Gauci said.

“The funding is a step in the right direction for a post-COVID recovery Australia, however we need more focus on agile training packages that are able to react faster to the emerging opportunities and new skills required for the technology industry. It is clear that the system of training to address skills needed by employers is fractured; both the policy environment and the qualification levers are siloed and inconsistent.

“We encourage an open dialogue with the National Skills Commission and ask that they work with the IT and tech industry in an effort to deliver the skills required to drive jobs in this field - effectively championing and becoming a global leader in digital sovereignty.”

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