THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell has called for federal legislation requiring small businesses to be paid in 30 days, amid a fresh wave of big businesses using the COVID-19 crisis as an excuse for poor payment times.

It’s a key recommendation made in ASBFEO’s final report regarding its Supply Chain Financing Review, released by Ms Carnell today, which reflects a recent surge in larger businesses pushing out payment times to their small business suppliers.

“Large businesses extending or in some cases, suspending payments to small businesses are on notice that this behaviour is unacceptable,” Ms Carnell said..

“There’s no denying businesses of all shapes and sizes are enduring extraordinary challenges as a result of the coronavirus crisis, but small businesses are being hit hardest.

“Many small businesses have been forced to close their doors and a lot may not survive the coming months, even with significant support from the government. That’s why it is more important than ever to ensure small businesses are paid on time," Ms Carnell said.

“We know that if small businesses are paid on time, the whole economy benefits. On the flip side, a lack of cash flow is the leading cause of insolvency.

“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.

“If Australia were to go down this path, it would not be alone. Just recently, legislation was tabled in the UK that stipulates a uniform 30-day statutory limit for payment of invoices and provides for enforcement of financial penalties for late payments," she said.

The Supply Chain Financing Review calls out several household-name businesses that have engaged in poor payment practices.

“MYER, David Jones, Just Group, Sussan Group, Carlton United Brewery and CIMIC are named in the report as having payment policies that are damaging to their small business suppliers," Ms Carnell said.

“Our review has revealed the voluntary Supplier Payment Code is not effective. There is no compliance monitoring and it is actually unenforceable. This is consistent with similar systems internationally.

“While we support the Payment Times Reporting Framework as a useful tool, it’s unlikely to result in the systemic change that is needed," Ms Carnell said.

“When used appropriately, supply chain finance is a legitimate and effective product that can be used to free-up cash flow for small and family businesses. In fact, it may be particularly useful to small businesses that need to be paid faster as they navigate their way through the COVID-19 crisis.

“However it is critical that harm inflicted on small businesses as a result of misuse of these products be urgently addressed.”

www.asbfeo.gov.au

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THE PLAN for the recently announced $1,174 million redevelopment of RAAF Base Tindal in the Northern Territory and the associated United States Force Posture Initiative Airfield Work will be scrutinised by the Parliamentary Standing Committee of Public Works at a public hearing tomorrow.

The inquiry into the RAAF Base Tindal Redevelopment Stage 6 and United States Force Posture Initiative Airfield Work project will examine the proposed base redevelopment aimed at maintaining existing base capability and airfield works to support KC-30A Multi Role Tanker Transport operations.

Public hearing details

Date: Tuesday, 21 April 2020
Time: 2pm to 3pm (AEST)
Location: via teleconference

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

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THE University of Sydney Business School’s Institute of Transport and Logistics Studies (ITLS) in partnership with the Business Council of Sustainable Development Australia (BCSD Australia) has launched a Mobility Pulse Survey to gather data on how prepared business is for mobility shocks and how it will pivot once the community is mobile again.
 
The enforcement of stay-at-home orders around Australia and the world has resulted in behavioural changes and a rethink of how we work and live. Remote working, reduced vehicle use and near empty public transport are just some examples of a living experiment which will change the sustainable mobility narrative.
 
Data is already showing improved air quality resulting from a reduction in commuting and that remote work can be extremely productive for those working in certain sectors and roles.
 
“With millions of workers now working from home this is exactly the right time for business to discuss sustainable mobility and to identify opportunities for business-wide change, such as flexible and remote work, lowering emission fleets and freight, as well as considering how customers and visitors access their sites,” said John Nelson, chair of Public Transport at the Institute of Transport and Logistics Studies at The University of Sydney Business School. 
 
“Through this survey we will better understand how business and communities are currently responding and also rethinking their approach to mobility management throughout their organisations and supply chains in a post-pandemic world,” Prof. Nelson said.
 
“These insights will be invaluable for formulating responses that can support business and workers, help to stimulate financial markets while also supporting pathways to a decarbonised economy.
 
Sarah Forde, director or BCSD Australia’s Mobility and Cities program said, “We are witnessing global and systemic impacts to mobility and how we work.

“In discussions with our members, we hear that business is keen to understand the impacts of these changed circumstances and their preparedness compared to what they were addressing before the impact of the virus on society and our economy.  This survey is a business-wide examination to help our members and ultimately the broader business community to better design of sustainable measures to ensure long-term preparedness.”
 
The survey takes 10-15 minutes and covers flexible work, staff and customer journeys, how suppliers and products move through the value chain, and the impacts on building and parking facilities, fleets, electric vehicles, logistics, infrastructure and technology.  
 
The Mobility Pulse Survey is open to companies of any size and sector. Responses are confidential and will be used to gather trends, highlight gaps and opportunities. Individual company results will not be identified publicly.

The outcomes will contribute to an ‘After the Pandemic Mobility Roadmap’ supporting business and community action towards achieving Sustainable Development Goals 3 – Good health and well-being, 11 – Sustainable cities and communities, 13 – Climate action.
 
The survey is available on the BCSD Australia’s website until Friday May 1. 

About BCSD Australia

The Business Council for Sustainabl Development Australia (BSCD Australia) is an Australian coalition of private and public organisations advocating for progress on sustainable development. Its mission is to be a catalyst for innovation and sustainable growth in a world where resources are increasingly limited. The Council provides a platform for companies to share experiences and best practices on sustainable development issues and advocate for their implementation, working with governments, non-governmental and intergovernmental organisations. BCSD Australia’s members include leading Australian businesses, from all sectors, who share a commitment to economic, environmental and social development, public sector enterprises institutions, business and industry non-government organisations and community organisations, which in turn represent more than 100,000 Australian employees. A full membership list is available: http://www.bcsda.org.au/membership
 
BCSD Australia is the Network Partner of the World Business Council for Sustainable Development (WBCSD), the Australian Partner of the We Mean Business Coalition, the Regional Platform Partner of the Natural Capital Coalition, and Australian Partner for CDP, the institutional formally known as the Carbon Disclosure Project. www.bcsda.org.au

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A BACKLOG in Investor Visa (IV) and Significant Investor Visa (SIV) applications and a slowdown in processing times is frustrating the supply of urgent funding for venture capital and emerging companies to survive throughout COVID-19.

Up to 50 applications remain frozen in the final stages of approval because of travel restrictions introduced in response to the COVID-19 crisis.

Executive chairman of Atlas Advisors Australia, Guy Hedley said it follows a downward trend in approvals under the program with slow processing times impeding the delivery of urgently needed funding for venture capital and emerging companies.

Mr Hedley urged the Australian Federal Government to speed up application approvals to unlock potentially $100 million for ailing startups and emerging companies.

“There are many fledgling Australian companies that have the prospects of becoming global leaders in health, technology, agribusiness and manufacturing,” Mr Hedley said.

“These companies have faced significant headwinds in funding in recent years and are now on the verge of collapsing because of the impact of COVID-19 on venture capital funding.

“The Australian economy risks losing billions of dollars, along with a decline in employment and intellectual property if this state of play continues.”

Mr Hedley said while application approval numbers had been decreasing in recent years, the processing time of applications had increased significantly.

“It used to take between six to nine months, in line with the program’s target timeframes, for visas to be processed,” Mr Hedley said. “It now takes up to two years for an outcome.”

“This is also up considerably from processing times of between eight and 12 weeks, five years ago."

In that time, the number of primary visas granted has declined. Approved applications fell to 98 in the six months between July to December 2019 from 191 in the previous corresponding period of July, 2018 to June, 2019.

In 2015, when applications were processed at their fastest, there were 879 approved.

“Fast-tracking approval for these applications could help innovative young Australian companies thrive through a period of uncertainty and high volatility,” Mr Hedley said.

About Atlas Advisors Australia

Atlas Advisors Australia is a 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 and Melbourne in Australia and Shanghai in China, it is able to support investors in all China and Australia locations.

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