THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed Coles Group’s announcement of adopting world-class core finance and procurement platforms, saying this should translate into quicker payment times for small to medium enterprises (SMEs) in its supply chain.

“We hope this digital transformation will mean all SMEs will be paid in 20 days or less, without discount,” Ms Carnell said.

“Better still, if Coles can implement e-invoicing for all SMEs in its supply chain, businesses should be able to be paid in five days.

“If the Federal and NSW Governments can pay suppliers in five days, Coles with its ‘multi-enterprise connectivity’ and improved speed should be able to do so as well.

“Coles Group works with an enormous number of farmers and suppliers across our nation. We hope Australia’s SMEs will directly benefit from this digital transformation.”

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THE NUMBER of owner occupier loans relating to new homes reached a 14-month high during October while investor participation in the market also stretched higher, according to Master Builders Australia chief economist, Shane Garrett. 

Today’s new set of figures from the ABS indicate that the number of loans to owner occupiers for new home building rose by 5.5 percent during the month, with the number of loans for the purchase of new dwellings up by 1.3 percent compared with September. Taken together, this means that the volume of loans relating to new homes has reached its highest level since August of last year. 

“There is also solid evidence that confidence has is returning to the investor side of the market with the value of lending on that side of the market up by 1.4 percent during October. Having declined for 11 straight months since mid-2018, investor lending has turned around registering increase during four of the past five months,” Mr Garrett said. 

“Based on recent results around building approvals, house prices and lending, it does seem that people are optimistic about the prospects for the housing market in 2020. Activity is going to get a further boost in January with the activation of NHFIC’s First Home Loan Deposit Scheme,” he said. 

“Managed properly, the clear improvement in housing market sentiment could help re-ignite confidence amongst consumers more widely and across the business community. The absence of optimism amongst these players is one of the main stumbling blocks for economic growth at the moment.

“The best way to build momentum is for the government to do everything it can to get new infrastructure projects rolling as early as possible. Building and construction projects are highly visible and represent the best way to signal to everyone that we are gearing up for a bright economic future,” Mr Garrett said.

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“THE Mid-Year Economic and Fiscal Outlook (MYEFO) released this morning shows that short-term prospects for economic growth and employment are weaker than was expected six months ago,” Denita Wawn, CEO of Master Builders Australia said. 

“While we welcome the expectation that we will still record a Budget surplus this year -- and continue to do so over MYEFO’s forecast horizon, the immediate priority must be for the Federal Government to redouble its commitment to economic growth,” she said. 

“Fast-tracking the actual construction of infrastructure projects so that there is money being spent to generate activity on the ground is the most effective way to achieve to this. 

“Our industry depends on growth to be the biggest provider of full time jobs in the economy. The Federal Government has enough fiscal space to boost demand in the economy while still achieving budgetary surplus.

“An expanded productivity agenda is also needed to build on the government’s continuing initiatives such as the deregulation taskforce to strengthen economic growth over time,” Ms Wawn said. 

“The government still needs to look at ways of providing an immediate and effective boost to demand in the economy to get us over the soft patch we currently find ourselves in.

 “Ramping up spending on construction of infrastructure is the best course of action. It offers a real opportunity to restore confidence amongst households and businesses and send everyone the message that our economy’s best days lie ahead of us,” Ms Wawn said.

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the Federal Government's mid-year budget update (the mid-year economic forecast outlook, MYEFO), saying it contained some welcome gifts for small businesses.

“It’s encouraging to see the Federal Government has allocated funds to establish the national payment times reporting framework,” Ms Carnell said.

“The framework will require large businesses to publish information about their payment policies, including how much time it takes to pay their small business suppliers.

“Critically, the government will provide $156.2 million over four years to streamline regulatory compliance processes and cut the cost of doing business.

“This includes the creation of a single national business register and the introduction of Director Identification Numbers," Ms Carnell said.

“We also welcome continued efforts by the government to combat illegal phoenixing behaviour. Illegal phoenixing not only hurts small businesses, it costs the economy as much as $3 billion per year. 

“The government will spend $10 million over two years on its deregulation agenda to make it easier for small businesses to employ staff and invest in growth.

“A new online checklist will provide small business employers with a guide to employing their first worker, along with a commitment to developing a new prototype ‘regtech’ platform.

“Funds have also been committed to extend the free tax clinic program, following a successful pilot program," Ms Carnell said.

“While small businesses will still use the tailored and comprehensive advice of their accountant or bookkeeper, there are many Australian microbusinesses that would benefit from additional support in understanding their tax and superannuation obligations.

“Of course, in the May 2020 Budget there are a number of items on our small business wish list, beginning with the extension of the instant asset write-off scheme.

“A lift in the $30,000 threshold for the instant asset write-off would be welcome with some industries such as farming requiring a higher threshold to enable them to purchase equipment," she said.

“We also want to see some funds towards implementing the recommendations in the Joyce review, so that small businesses can get the staff they need with the right skills and training.

“At the end of the day, small businesses just want to be able to get on with the job of growing their business," Ms Carnell said.

“We will continue to talk further with the government on measures that will benefit the small business sector and stimulate the economy.”

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