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Don’t let Buy Queensland sell Australia short - Export Council

“ANY ‘Buy Queensland’ policies must be consistent with Australia’s international trade commitments,” said Lisa McAuley, CEO of the Export Council of Australia (ECA). “Otherwise they will undermine Australia’s international credibility and risk retaliation.”

The Australian Government works closely with state governments when negotiating Free Trade Agreements (FTA) and other trade commitments.

“States have plenty of opportunities during negotiations to object to any commitments. As part of the process, state governments opt in before an FTA enters into force. The Queensland Government has opted in to all of them” said Ms McAuley. “Backing out once they’re in force undermines the whole agreement. The way international trade works is that you have to deliver what you say you will. Otherwise, who’s going to trust you in future negotiations?”

Open trade benefits all parties, lowering costs for consumers (or, in the case of government procurement, taxpayers) and enables domestic businesses to expand their markets and create jobs. By contrast, protectionist measures increase costs to consumers and can lead to retaliation by trading partners.

“What’s to stop other Australian states shutting out Queensland firms from their procurement contracts?” Ms McAuley asked. “But it’s not just domestic government procurement that might be affected.”

International trade statistics provide detailed breakdowns of which goods come from which ports.

“A trading partner could pretty easily work out which of their Australian imports mostly come from Queensland, and put in place retaliatory measures that focus on Queensland exporters. Does anyone think the current administration in the United States would hesitate to retaliate if it saw an opportunity and a political advantage?” said Ms McAuley.

“If the Queensland Government does anything to back out of its trade commitments, it is putting its exporters at risk.”

www.export.org.au

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ARA calls on Senate inquiry to rectify the BOOT test

THE Australian Retailers Association (ARA) has put forward a submission to the Senate Education and Employment Committee on the Senate Penalty Rates Inquiry regarding Enterprise Bargaining Agreements (EBA).

This inquiry focuses on the operation, application and effectiveness of the Better-Off Overall Test (BOOT) for EBAs and their relationship with penalty rates across the retail and hospitality industries.

ARA Executive Director Russell Zimmerman said the current state of EBA’s actually provide more flexibility for employers and employees working within the retail sector.

“The ARA’s submission opposes and clarifies the perceived inadequacies surrounding EBA’s as the current EBA model provides a higher base rate for retail employees,” Mr Zimmerman said.

As retailers continue to face a difficult trading environment the ARA believe the Fair Work Commission need to re-evaluate the unnecessary complications and demanding requirements for the BOOT.

The unrealistic definitions to the BOOT exacerbates the constant challenges retailers face in the ever-changing retail environment, brought on by international competition and significant cost pressures in the sector,” Mr Zimmerman said.

With retailers across the country already facing tough trading conditions and an appeal to the Fair Work Commission’s penalty rates decision, the ARA strongly supports a fairer and more flexible EBA system and improve the BOOT.

To view the ARA’s full submission to the Senate Standing Committees on Education and Employment, 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 7,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Small business sector slugged by rising power prices

THERE IS mounting evidence that small businesses are bearing an unfair higher share of rising electricity prices.

Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, says submissions to the ACCC electricity pricing inquiry confirm anecdotal accounts that small businesses are being gouged.

Ms Carnell said while households in several states are grappling with price increases of 15-18 per cent, for most small businesses it’s above 20 per cent, with higher rises forecast next year.

“It’s totally unacceptable that energy-dependent small businesses like manufacturers and rural industries are being slugged more than householders and big business,” she said.

“The energy system is broken and needs to be fixed, but we can’t afford to see businesses close and jobs lost while governments and energy companies get their act together.”

Ms Carnell cited examples from submissions to the ACCC inquiry:

Printing Industries Association of Australia

Feedback from our members shows individual increases in electricity prices which include $20-30,000 a month; increases over the previous 12 months (or a comparable period) of 25%, 35%, 48%, 67%. One large-sized Melbourne-based print member will face an electricity bill increasing threefold (from $120k per annum to $360k) once its existing contract expires on 31 December 2017. Many of our members have incurred these increases despite decreasing the amount of electricity they use.

South Australian Wine Industry Association

We are aware of one larger winery that had invested nearly $400,000 in energy-efficiency improvements and solar power that reduced costs by around $120,000 per year, only to then face an increase in electricity cost of 160% in one year amounting to $250,000 – a cost that comes straight off the bottom line.

Alba Cheese Manufacturing (Melbourne)

All electricity retailers we have dealt with provide complex pricing arrangements which make it hard to make comparison between the various offers. In discussion with energy retailers they focus on the energy rate and blame energy suppliers for the cost increases, they gloss over their own charges and dismiss them as being “beyond their control”. Analysis of electricity charges over the last five years shows that network charges rose by an annual rate of 25.9% over the period whilst energy charges rose 21.3% per annum.

Business SA case study: Regional feed mill JT Johnson & Sons

JT Johnson runs a regional exporting business, centred around the export of hay and pellets to Middle Eastern and Asian fodder markets. In mid-2016, and after just having undergone a major upgrade of its power infrastructure, JT Johnson’s total energy bill increased from $800,000 to $1.6 million after its wholesale energy peak price trebled from 6.4 cents to 19.3 cents.

Tasmanian Small Business Council

The wholesale forward price for 2016-17 back in May 2015 was trading around $43.50/MWh and then 12 months later for the same period was trading at $59.60/MWh, a 37% increase in costs. For a contestable customer consuming 100,000MWh per annum, this cost increase would have been in the order of an additional $1.7 million. For a customer consuming 200MWh per annum, such as a school or medium-sized business, the additional cost would be $3400 per annum.

Ms Carnell said the submissions expressed small business concerns with lack of retail competition; complexity around price comparisons and billing; transparency, and disincentives to reduce consumption.

“I’m deeply concerned that small businesses appear to be victims of profiteering by electricity companies,” she said.

“I welcome the NSW Business Chamber suggestion of an industry code to provide minimum standards for energy retailers.

“These standards could be designed to provide a common basis for comparisons between offers, a minimum length of time to consider retail offers and requirements for greater transparency with billing.”

www.asbfeo.org.au

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2017 eftpos ARA Australian Retail Awards speakers announced

THE Australian Retailers Association (ARA) has announced Radek Sali of Swisse as keynote speaker at the 2017 eftpos ARA Australian Retail Awards next week.

The eftpos ARA Australian Retail Awards are the retail industry’s longest running recognition of success, and this year will take place at the Great Hall, National Gallery of Victoria in front of 550 retailers on August 3 in Melbourne.

Radek Sali is an accomplished leader of international business, having made his mark as CEO of household name Swisse in his early thirties. Radek is credited to have led Swisse through rapid growth in product lines, stockists and revenue, and initiated one of Australia’s largest ever licencing deals with PGT, with plans to launch Swisse in over 30 countries in three years across Europe and Asia.

Russell Zimmerman, ARA Executive Director, said the Awards Breakfast is an opportunity for all Australian retailers to come together to celebrate the success of their peers, network, and learn from other’s experience.

The 2017 eftpos ARA Australian Retail Awards will also be hosted by esteemed ABC journalist Beverley O’Connor.

“To have Radek on board to share the journey and learnings behind his success is a real advantage, and Beverley will only add to the atmosphere of celebration and industry support we expect the 2017 Awards to provide to retailers,” Mr Zimmerman said.

With the Top 20 retailers already shortlisted for the coveted 2017 Retailer of the Year Award, tickets to attend the 2017 Awards Breakfast have already sold out, so keep your eyes peeled for the winners to be announced post event.

About the eftpos ARA Australian Retail Awards

First held in the 1970s, the eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, recognising and rewarding outstanding retail businesses, innovations, and individuals across all sectors of retail. Relaunched in 2008, the annual 2017 eftpos ARA Australian Retail Awards breakfast will commence on Thursday 3 August at Melbourne’s National Gallery of Victoria.

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 368 041.

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IPA calls for ATO service commitment to improve accountability

THE Institute of Public Accountants (IPA) has called for greater accountability from the ATO in light of the ongoing technology issues that have significantly impacted accountants and small businesses across Australia.

“The IPA has constantly heard the plea of our members who have suffered ongoing IT issues with the ATO,” said IPA chief executive officer, Andrew Conway.

“We know that the ATO is doing whatever it can to rectify the failing functionality of its IT systems but apologies do not undo the pain that it is inflicting.

“While some of our members have called for compensation, we are realistic in our expectations.  However, it should be recognised that accountants and tax agents have worn the brunt of this issue over many years.

“Whilst clients of tax practitioners are generally not disadvantaged, very little concessions are granted to the tax practitioners themselves.

“To give context to the significance of this issue, 74 percent of taxpayers go to a tax agent to look after their affairs and 95 percent for businesses.  Consequently, our members do the heavy lifting and are reliant on the ATO systems to service their clients.

“While the ATO is pursuing a digital by default strategy, stakeholders need systems available 24/7.

“As a result of the ongoing system issues, our members have experienced reputational damage with their clients along with loss of productivity.  These factors play a big part in the status of their mental health and wellbeing.

“When critical systems go down, client appointments get cancelled, support staff lay idle and backlogs start piling up.  When there is a major outage, everything grinds to a halt.

“We believe there should be a service commitment from the ATO; an agreement where there are specified and agreed service levels and if those service levels are not met, penalties should apply. This would be akin to arrangements that operate in the commercial world with critical service providers.

“Our members are subjected to key performance benchmarks when it comes to lodgements so it is not unreasonable to ask that the ATO has its own benchmark to improve accountability around IT service delivery,” said Mr Conway.

 

publicaccountants.org.au

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