THE AUSTRALIAN Parliament’s Joint Committee of Public Accounts and Audit will discuss performance planning and reporting with Commonwealth agencies at a public hearing this Wednesday.

The hearing forms part of the Committee’s inquiry into the Commonwealth performance framework, based on recent Auditor-General reports. The framework, established under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), requires Commonwealth agencies to produce Corporate Plans, Portfolio Budget Statements and Annual Reports, including Annual Performance Statements.

Committee Chair, Senator Dean Smith, said that improving the Commonwealth performance framework has been a long-term focus of the Committee.

“The new framework requires agencies to implement more meaningful performance information and report more consistently throughout the performance cycle, to strengthen accountability to the Parliament and the public.”

“The Committee will hear from agencies on how they have implemented new corporate planning requirements, and from the Department of Finance on the support and guidance it provides in this area. The Committee will also hear from the Australian Taxation Office and the Department of Education and Training on whether they have implemented appropriate performance information for the Higher Education Loan Program,” Senator Smith said.

The JCPAA is the Parliament’s joint public administration committee. The Committee scrutinises the governance, performance and accountability of Commonwealth agencies, and has the power to inquire into all expenditure of Commonwealth money.

Further information about the inquiry can be accessed via the Committee’s website.

Public hearing details: Wednesday 23 November 2016, Committee Room 2R1, Parliament House, Canberra

9:00am: 
ANAO Report 6: Corporate Planning in the Australia Public Sector
Australian National Audit Office, Australian War Memorial, Commonwealth Superannuation Corporation and Department of Finance

9:45am:
ANAO Report 31: Administration of Higher Education Loan Program Debt and Repayments
Australian National Audit Office, Australian Taxation Office, and Department of Education and Training

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

Interested members of the public may wish to track the committee via the website. 

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THE House Tax and Revenue Committee will hold a roundtable public hearing tomorrow with tax professionals. The hearing precedes the Committee’s public hearing with the Commissioner of Taxation and the Inspector-General of Taxation later this month.

In the lead up to Tax Time 2016, the Australian Taxation Office focused on feeding the results of industry consultation into the progressive project design and implementation of its new lodgement and advisory programs. With the old Electronic Lodgement systems being kept on until full digitalisation in 2017, there is work ahead to inform and support the community to adjust to digital lodgement. 

At this hearing the Committee will meet with three key tax practitioner bodies—CPA Australia, Chartered Accountants Australia and New Zealand, and the Tax Institute—to discuss how the ATO’s reinvention of its services is tracking since the former Committee met with these representatives in February of this year.

In addition to the ATO’s progress on new technology projects, the hearing will also investigate how the ATO’s transformation is working to increase willing participation (voluntary compliance) and build confidence in the ATO and the tax and superannuation systems.

The Committee Chair, Mr Kevin Hogan MP, said “The ATO appears to have made progress in establishing a consultative culture with tax professionals, with Tax Agent and BAS portals improved. At the same time, according to the ATO, while overall online lodgement has increased by nine per cent this year, lodgement by small business declined. The Committee is keen to investigate with tax professionals how they can grow their client base among small business and what the ATO can do to assist them.”

Public hearing details: Wednesday 23 November 2016, Committee Room 2R1, Parliament House, Canberra

4:10pm:
CPA Australia, Chartered Accountants Australia and New Zealand, and the Tax Institute

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

Interested members of the public may wish to track the committee via the website. Click on the blue ‘Track Committee’ button in the bottom right hand corner and use the forms to login to My Parliament or to register for a My Parliament account.

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THE Australian Institute of Credit Management (AICM) has partnered with the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in a bid to ensure small businesses across the country get paid in a timely fashion.

The futures of many family and small businesses are being put under serious threat by the payment times imposed by many big businesses and governments across the country, and this self-initiated enquiry aims to put a spotlight on the lengthy payment times that are being dictated, and often missed.

In a 2013-14 ASIC report into business insolvencies, it was identified that inadequate cash flow contributed to 41 percent of companies going to the wall. This inquiry aims to build up an accurate picture of the time it takes for payment to be processed across all areas of business. 

Nick Pilavidis, CEO of the AICM, whose members are professionals in managing cash flow and risks associated with credit sales, believes this inquiry is critical to not only get an accurate and realistic picture of the payment landscape in Australia, but to help small businesses succeed.

He says, “Cash flow is the lifeblood of all companies, however for small and family businesses it’s absolutely critical. Small businesses are often beholden to corporate clients, who dictate payment times. Lengthy payment times and missed payments can have a significant impact on people’s livelihoods and indeed lives.

“For some businesses, being paid on time will mean being able to pay staff on time. Being paid on time means being able to stay in business.

“AICM members regularly see their SME customers delaying payment to them due to the late payment by large businesses. Improving payment times for small business will have a positive effect on the whole business cycle.

“Late payments have a far greater effect than people may at first envisage. We need to raise awareness of this state of play across the country, and put pressure on big businesses to meet their payment obligations.

“The dilemma for small businesses is that they need to engage with large corporates, yet to operate they need the money to keep flowing in. It’s a vicious circle.

“We hope to get a clear understanding so small businesses will firstly have a good idea of what they’re getting into, and what resources they need to have in reserve, and secondly we hope to work with the large businesses to help them understand the real-life impact they’re having.”

As part of the inquiry, ASBFEO and AICM will be joined by state-based Small Business Commissioners in New South Wales, Victoria, South Australia and Western Australia, the Council of Small Business Australia (COSBOA), federal and state/territory governments and their agencies.

For more information visit www.asbfeo.gov.au/inquiries. Small businesses who would like to have their say can do so at the above website or by phoning 1300 650 460.

FOLLOWING the launch of the IPA Deakin SME Research Centre last week, the Institute of Public Accountants (IPA) has said that the mental health and wellbeing of small business owners will be included in the Centre’s policy focus.

“Small business keeps our economy moving; they sustain our communities and families and we have an obligation to understand their drivers, their challenges and assist them realise their potential,” said IPA chief executive officer, Andrew Conway.

“Running a small business is tough; it is all-consuming. Small business owners have everything on the line and that brings with it real anxiety. This contributes to the existing high rates of depression amongst small business owners.

“We need to delve into the social impact of small business ownership to arrive at a day when starting a small business is seen as a natural and viable first option career path for younger people. 

“The IPA Deakin SME Research Centre will explore small business welfare and the social impact with the intention of driving policy that supports the wellbeing, growth and prosperity of small businesses,” said Mr Conway.

publicaccountants.org.au

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