Skip to main content

Business News Releases

ARA calls on the Productivity Commission to widen the net for GST

THE Australian Retailers Association (ARA) has put forward a submission to the Productivity Commission (PC) inquiry into Collection Models for GST on Low Value Imported Goods.

The submission supports the preferred Vendor Collection Model along with additional measures which could become more effective collection models over time.

The PC is tasked with investigating the best model for collecting GST on tangible offshore purchases under $1000 AUD. The changes to GST are set to come into effect from 1 July 2018, ensuring fairness for Australian retailers.

Currently, the PC supports a Vendor Collection Model where the overseas retailer collects the GST at the time of purchase. The ARA supports this as a first step and is calling on the PC to also consider additional models to ensure greater efficiency.

ARA Executive Director Russell Zimmerman said the GST changes were important for levelling the playing field for Australian retailers.

“This is about fairness for Australian retailers who are facing tough trading conditions, especially with overseas competitors going untaxed up to now,” Mr Zimmerman said.

“We support the Vendor Collection Model, but we also believe it is important to look at other models to increase the efficiency of GST collection.”

The submission calls on the PC to consider allowing GST to be collected by post and transport companies as international agreements become effective. This in combination with the Vendor Collection Model would achieve close to 100 per cent compliance over time.

“Retailers are looking forward to these changes being implemented from July 1 next year, but concerns remain about the effectiveness the amount of tax collected,” Mr Zimmerman said.

“Changes in technology over the next few years will allow post and transport companies to also collect the GST from overseas purchases. These transporters should be responsible for tax and excise on the items they are transporting.”

“We see this as a very effective way to level the playing field for Australian retailers.”

To view the ARA’s submission to the Productivity Commission Inquiry on Collection Models for GST on Low Value Imported Goods, please click here.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 

ends

  • Created on .

Dodgy labour practices in Lockyer Valley targeted in multi‑agency operation

THE Fair Work Ombudsman has joined forces with Queensland Workplace Health and Safety and the Queensland Police to lead a multi-agency compliance operation targeting worker exploitation in the Lockyer Valley.

The operation began following a tip-off from within the farming industry.

The allegations included potential underpayment of wages; workers being provided unsafe and very poor accommodation, unsafe drinking water and unregistered transport; and workers being charged job find fees. 

In response, a 12-person team of Fair Work inspectors, Work Health and Safety inspectors and police conducted unannounced visits to four vegetable farms over two days.

Fair Work inspectors are auditing the farms’ employment records for July and August 2017 to check compliance with the Fair Work Act 2009 and Horticulture Award 2010.

As a result of the operation, the Fair Work Ombudsman has commenced a number of investigations into potential breaches by several contractors.

Issues outside the Fair Work Ombudsman’s jurisdiction are being dealt with by the relevant regulators.

Fair Work Ombudsman Natalie James said it was encouraging to see businesses taking a proactive interest in ensuring compliance within the horticulture sector.

“The fact that the industry itself is willing to bring forward allegations of suspected non-compliance is a positive sign,” Ms James said.

“Over a number of years my agency has undertaken activities aimed at shining a light on the dodgy labour practices and it is pleasing to see the industry take steps to stamp out these insidious practices.

“It is blatantly unfair for workers and it is unfair for responsible operators that are doing the right thing to have to compete with those who base their business models on unlawful activities. 

“We are pleased to work alongside Queensland Workplace Health and Safety and the Queensland police in this operation to tackle the serious issues in this sector.

“It sends a strong message to crooked operators that we are on the case and will use our powers to enforce the law and disrupt their unlawful activities.”

Known as Queensland’s salad bowl, the Lockyer Valley is a principal horticulture growing area in Australia.

The Fair Work Ombudsman’s Harvest Trail Inquiry, due to report its findings this year, is focusing on the horticulture and viticulture sectors nationally in response to ongoing requests for assistance from employees in the sector, persistent underpayments and confusion among growers and labour hire contractors about their workplace obligations.

Ms James says while employers must comply with their workplace obligations, it was important for workers to understand their workplace rights and know where to go to seek help.

“I strongly encourage all workers engaged in the sector to check out the Fair Work Ombudsman’s top tips for backpackers, seasonal workers and growers online,” Ms James said.

Employers and employees seeking assistance can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94. An interpreter service is available on 13 14 50

The Fair Work Ombudsman’s ‘Record My Hours’ smartphone app is aimed at tackling the persistent problem of underpayment of vulnerable young workers by using geofencing technology to provide workers with a record of the time they spend at their workplace. The app can be downloaded from the App Store and Google Play.

Overseas workers can now anonymously report workplace issues in their own language following the launch of the Fair Work Ombudsman’s Anonymous Report function in 16 languages other than English.

ends

 

  • Created on .

ASIC small business strategy welcomed: IPA

THE Institute of Public Accountants (IPA) has welcomed the corporate regulator’s small business strategy 2017-20.

“It is very pleasing that ASIC is placing due attention on small business through its small business strategy with the focus on "assist, engage, protect," said IPA chief executive officer, Andrew Conway.

“In particular, we support and encourage the effort to engage by promoting and supporting greater financial capability of small business owners. 

“During our Small Business White Paper roadshow across Australia, the need for greater financial literacy by small business owners has emerged as a constant theme. 

“The IPA also encourages assisting small business by promoting an understanding of compliance obligations. 

“Small business cannot always do this alone and we encourage small business owners to consider using public accountants and other advisers to assist in meeting their compliance obligations. 

“We also support ASIC's actions as a regulator to protect small business through its activities to level the playing field by investigating and taking action against those who are not doing the right thing. 

“As a promoter and key advocate of small business, the IPA believes that we all have a part to play in building and strengthening the small business sector, said Mr Conway. 

The IPA is currently developing the second edition of the Small Business White Paper which puts forward recommendations to boost small business productivity and prosperity.

publicaccountants.org.au

ends

  • Created on .

ATO checking that cash adds up in Sunnybank

CAFES, shops and salons in the Sunnybank area of Brisbane can expect a visit from the Australian Taxation Office (ATO) in September as part of efforts to tackle the cash economy.

Assistant Commissioner Tom Wheeler said that while most small businesses now take electronic payments, accepting cash is still common.

“When businesses advertise as ‘cash-only’, it raises a red flag about whether those businesses are accurately reporting all their income, and meeting their obligations as an employer,” Mr Wheeler said.

“Over the next 12 months, ATO staff will be visiting businesses across the country. We are focusing on businesses that typically have high cash transactions or only take cash, such as restaurants, cafes, pubs, hairdressers, beauty salons and home-based businesses, along with other local retailers.”  

Mr Wheeler said that after the visits the ATO will assess if some businesses need assistance in understanding and meeting their obligations.

“These visits are an extension of our ongoing focus on protecting honest businesses and supporting those that need extra help to get their tax right,” Mr Wheeler said.   

“If a business is behind in their lodgments or their record keeping isn’t quite up to scratch, we will give them some support to get back on track. Other businesses may be investigated because we’re concerned they’re deliberately doing the wrong thing.”

Mr Wheeler said the ATO is reminding taxpayers that running a cash-only business doesn’t mean they’re invisible to the ATO.

“We receive data on businesses that take electronic payments, so we can identify those that don’t. This means we can investigate further to make sure they are meeting their tax and super obligations,” Mr Wheeler said.

“In 2015–2016 the ATO raised over $208 million in tax and penalties from its cash and hidden economy compliance activities.”

“We urge all businesses to report all their income and meet all their obligations as an employer. Our increased use of data and analytics mean that sooner or later, we will catch up with those businesses seeking to avoid their obligations. The cash economy just doesn’t pay.”

For more information, visit ato.gov.au/protectinghonestbusiness

ends

  • Created on .

City of Melbourne incubates global start-ups

MELBOURNE-BASED start-ups are being given the chance to share in $80 million in financial support and connect their ideas with the world, after the opening of a new incubation space in the CBD.

The City of Melbourne has partnered with the Jiangsu-Suzhou Science and Technology Town, RMIT University, the University of Melbourne, Victorian Government and Australia China Association of Scientists and Entrepreneurs (ACASE) to open the Jiangsu-Victoria Innovation Centre at 51 Queen Street.

The Innovation Centre, run by ACASE, will provide Melbourne based startups with access to coaching, market information and entrepreneurial guidance, linking their ideas with universities, research institutes and the Chinese based Suzhou accelerator space to expand their reach into Asia.

Suzhou High-Tech Venture Capital Group is providing up to $80 million in financial support to run the centre, facilitate access to angel investment and fund project development over three years.

Acting Lord Mayor Arron Wood said the centre is the first of its kind in Melbourne and will feed into our booming startup sector.

“This Jiangsu-Victoria Innovation Centre will nurture the next generation of innovators and entrepreneurs to go on to great things,” Cr Wood said.

“The incubation space will provide expert business development guidance and the potential to export ideas to the world.

“Melbourne is now home to 170 co-working spaces, which is one measure of a healthy startup community. The recent launch of our Startup Action Plan shows we're serious about playing our role. Add to this the Jiangsu-Victoria Innovation Centre and it makes for exciting times for new and innovative businesses and business models.”

Chair of the City of Melbourne’s Prosperous City portfolio Councillor Kevin Louey said Council’s vital contacts in China helped get the Innovation Centre off the ground.

“For many years the City of Melbourne has worked tirelessly to help connect our businesses to the largest economy in the world,” Cr Louey said.

“This Innovation Centre is the culmination of many months of work between the Suzhou-Jiangsu governments, the City of Melbourne, ACASE, and two of Australia’s biggest universities in RMIT and University of Melbourne.”

The first cohort of startups to occupy the space will be selected from the ACASE Sunan Cup competition winners earlier this year.

The startups range from “intelligent clothing” to smart electronic stethoscopes, smart alarms and third-party brain MRI imaging.

Victorian innovation minister Philip Dalidakis said the announcement was another positive step for Victoria as the state continues to develop as Australia’s technology hub.

“We’re already seeing plenty of brilliant startups emerge in our state and I have no doubt that this centre will help more startups turn bright ideas into thriving businesses.”

www.melbourne.vic.gov.au

ENDS

  • Created on .