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GST 20 years on – Australia leading the way on e-commerce

THE RECENT Organisation for Economic Cooperation and Development (OECD) Value Added Tax/Goods and Services Tax (GST) Global Forum hosted by the ATO in Melbourne displayed the leading role Australia is taking in adapting the GST to respond to the online marketplace, both within Australia and globally.

Deputy Commissioner Tim Dyce said latest revenue figures show that digital marketplaces and lower value international online sales were not an impossible nut to crack.

“The digital services measure has already achieved $272m GST in the first year or 180 percent ahead of forecast," Mr Dyce said.

"We’ve collected $81 million from the low value imported goods measure in the first three months of operation, already above our full year revenue estimate of $70 million. We’re tracking at over 300 percent of forecast.

 “There was a lot of discussion prior to their introduction about whether these kinds of measures could possibly work, and in many ways it is the most significant change in the way we have collected GST since its inception almost exactly 20 years ago.

“Thanks to the right consultation and design, led by Treasury along with the ATO, and with important input from business, the measures have clearly been effective, which shows we can provide a level playing field for online and physical businesses and between domestic and foreign businesses.

“Not only have we had high levels of registration for these measures and well above forecast revenue, we’ve even had feedback from some online sellers that the registration has improved their business processes and given them greater insight into their sales performance,” Mr Dyce said.

The ATO and OECD representatives welcomed officials from over 100 countries last week to the Global Forum to hear their views on a range of GST/VAT issues facing revenue authorities. The interest in our reforms from other countries means that the ATO can look forward to increased international cooperation as more jurisdictions follow this, or similar, models.

“I’d like to thank everyone, from across six continents, who came to talk about next steps last week” Mr Dyce said. "The ATO looks forward to working with both members of the OECD and non-members to build a system that is fit for purpose as we continue to see rapidly evolving and entirely new digital marketplaces.

“International cooperation across all aspects of tax administration remains one of the most important tools we have for ensuring everyone is paying the right amount of tax and that we are protecting honest businesses from unfair competition,” Mr Dyce said.

Further information on the GST measures and other advice on international tax for business is available on the ATO website.

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Changes to ROE rules a positive step towards 'protecting workplaces from union bullies' say Master Builders

THE CHANGES to Right of Entry (ROE) regulations announced on March 26 are a positive step towards achieving a stronger and fairer approach to rules about union officials entering workplaces, according to Master builders Australia.

Denita Wawn, CEO of Master Builders Australia said, “It is important to ensure worker representatives can access work sites, but it is equally important that the Right of Entry system is strong and rigorous, to make sure it is not abused by union officials who try and get on site to bully and harass small businesses.

“The building and construction industry is plagued by a history of unions breaching ROE rules, with the list of court cases and penalty decisions growing longer every day,” she said.

Since 2015, there have been breaches of ROE rules on construction sites, Ms Wawn outlined:

  • By 58 individual CFMEU officials.
  • At least 189 times.
  • Resulting in penalties of almost $3 million, with three further penalty hearings already set for 2019. 

“Master Builders is pleased that the Government has heard the voice of the building industry, small business, and sub-contractors. Something has needed to be done for a long time to protect workers on sites who, day in day out, face the threat of bullying and abuse by construction union officials.” Ms Wawn said.

“However, more needs to be done and we will be asking both major parties to ensure they close the remaining loopholes that building unions regularly exploit, Denita Wawn said.

www.masterbuilders.com.au

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Canberra’s coal comfort should be a $1 billion Maroon Fund for Queenslanders

THE Queensland Resources Council wants the upcoming Federal Government’s Budget and the Opposition’s Budget Reply to commit to reinvesting back into Queensland the extra $1 billion in company tax that will flow into Canberra due to higher metallurgical coal prices. 

QRC chief executive Ian Macfarlane said based on Federal Treasury’s calculations, the higher than projected metallurgical coal price would provide an extra $1.2 billion for the balance of this financial year and next financial year (2019-20).

Mr Macfarlane said he urged Prime Minister Scott Morrison and Opposition Leader Bill Shorten to ensure they committed the extra $1 billion to a Maroon Fund.

“Queensland produces the lion’s share of Australia’s metallurgical coal. Queenslanders deserve this billion-dollar unbudgeted windfall reinvested back into their State, where the coal was produced and exported from,” Mr Macfarlane said.

“For every Queenslander, that extra $1 billion counts. Indeed, that extra revenue is the equivalent of $200 for every man, woman and child living in Queensland.”

Prior to Christmas last year, Mr Macfarlane said Federal Treasury projected: “If the metallurgical coal price remained elevated for two quarters longer than currently assumed, before falling immediately to US$120 per tonne FOB, nominal GDP could be around $2.5 billion higher than forecast in 2018-19 and $3.5 billion higher in 2019-20. This would have a flow on impact to company tax receipts estimated at around $0.2 billion in 2018-19 and $1.0 billion in 2019-20.”*

The average metallurgical coal price this year has been US$204 per tonne.

“I am urging community groups, charities, local councils and other industries to nominate their project and cause for the Maroon Fund,” Mr Macfarlane said.

“The continuing drought and recent flooding rains have demonstrated the steely resolve of Queenslanders, but it has created a lot of need.  That should be a priority for the Maroon Fund.

“So should important services such as health and education to support the work in our hospitals and in our classrooms.”

Mr Macfarlane said QRC would forward all Maroon Fund funding requests received by Budget Day on April 2 to both Mr Morrison and Mr Shorten.

“QRC will have no role in their selection, but we will ensure both leaders have these funding requests.  I’m sure Queenslanders will be interested before the upcoming Federal election to know where the $1 billion goes,” he said.

“Perhaps the Palaszczuk Government will fill out a form," Mr Macfarlane said. "This $1B would be on top of the more than $5 billion the Qld Government collects from royalty taxes from the resources sector this financial year.”

The Maroon Fund initiative form can be downloaded at https://www.qrc.org.au/nominations/maroon-fund/ 

Mr Macfarlane said the resources sector was already doing its bit to keep Queensland strong – making a contribution of more than $62 billion to the State’s economy or one in five dollars, supporting more than 316,000 full-time equivalent jobs or one in eight jobs in the Queensland workforce, generating more than 80 percent of the State’s record $80 billion annual export sales and working with 1260 community organisations.

www.qrc.org.au

*See page 33 of Link to the 2018-19  Mid-Year Economic and Fiscal Outlook https://budget.gov.au/2018-19/myefo/myefo_2018-19.pdf

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Ombudsman welcomes small business telecommunications dispute team

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell today welcomed the Telecommunications Industry Ombudsman’s (TIO) announcement that it will form a Small Business Team.

“From April 1, 2019, small businesses who are in dispute with their telephone, mobile or internet services provider will have a specific team to contact,” Ms Carnell said.

“Connectivity is key to a business’ success. With 95 percent of small businesses online, a disruption or complete lack of connection can affect their sales, marketing, ordering and invoicing processes.

“It’s not acceptable for small businesses to lose customers due to problems with phone or internet connections, which is why this new small business team within TIO is needed.

“For example, we recently helped a Canberra-based chemist whose phone line had been disconnected for 59 days. The telecommunications provider had cut the lines while redirecting to the NBN. The chemist then had their fax line disconnected which caused, among other issues, critical concerns regarding doctors being unable to fax prescriptions for palliative care medication.

“Once my Assistance team stepped in, the telecommunications provider reconnected both the phone and fax lines.

“We will continue to support measures that assist small businesses to maintain and grow their digital connectivity,” Ms Carnell said.

www.asbfeo.gov.au

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Telecommunications Industry Ombudsman announces new small business team

THE Telecommunications Industry Ombudsman has announced the formation of a Small Business Team, commencing April 1, 2019.

In 2017/18, complaints from small businesses increased 8.7 percent to 20,433. This increase was largely driven by issues including no action or delayed action by their service provider to resolve their phone or internet issue, followed by complaints about disputed charges for a service or equipment.

In announcing the Small Business Team, Ombudsman Judi Jones said, “Small businesses are relying more than ever before on phone and internet services to be accessible, be informed, and to do business. It is critical they are able to rely on the phone and internet services they sign up for, and to have access to a free, independent, and effective complaint resolution service when their complaint is unresolved.”

Assistant Ombudsman of Dispute Resolution Jillian Brewer is looking forward to the delivery of this specialised service.

"Resolving small business complaints can involve complex phone, internet and equipment setups, and an understanding of how these issues impact business loss," Ms Brewer said. "The Small Business Team will deliver a dispute resolution service that is responsive to the high impact phone and internet problems can have on the day to day operations of small businesses.”

About the Telecommunications Industry Ombudsman

The Telecommunications Industry Ombudsman provides a free and independent dispute service for small business and residential consumers who have an unresolved complaint about their telephone or internet service in Australia. Residential consumers and small businesses should contact www.tio.com.au or 1800 062 058.

The Telecommunications Industry Sector

The Telecommunications industry regulators are the Australian Communications and Media Authority (ACMA),http://www.acma.gov.au  and the Australian Competition and Consumer Commission (ACCC) https://www.accc.gov.au.

Government and the regulators set policy and regulations for the telecommunications sector. Communications Alliance is the peak body for Australian communications industry http://www.commsalliance.com.au

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