SMALL businesses caught-up in banking disputes are looking for immediate action to resolve their issue, not a drawn-out talk fest about the banks, Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said.

“Speaking from a small business perspective, the current political debate about the most effective ways to deal with community concerns regarding the banks, needs to acknowledge the importance of finding solutions to individual problems quickly and effectively,” Ms Carnell said.

“I’ve held extensive consultations with the small business sector in recent months, and bank-related complaints are certainly high on their list of grievances; so much so that in my view, without an increased level of accountability, some banking practices certainly have the capacity to stifle the growth potential of many small businesses in this country.

“More often than not, small businesses involved in disputes with their banks are hurting; they can ill-afford the time and money it takes to sort these kinds of problems out. They need help and support, and they need it now.

“This isn’t an argument for or against a Royal Commission; this is about getting immediate outcomes for small businesses and finding a mechanism that delivers solutions in a timeframe that helps business owners get back on track as soon as possible.

“A Royal Commission may allow mum-and-dad small business owners to tell their story, but it won’t save their businesses.  Royal Commissions typically go on for years, and by the time it produces its recommendations, businesses that are hurting now, will be long out the door.

“Whatever action the Government decides to take in dealing with concerns people have with the banks, my office stands ready to help small businesses who are experiencing bank-related problems; we can point them in the right direction and help assist them get on with what they’d rather be doing; running their small business and in doing so, making a significant contribution to the economy.”

www.asbfeo.gov.au

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THE Minister for Defence Industry, Christopher Pyne, today announced two significant defence industry contracts worth approximately $300 million and securing hundreds of local jobs while visiting defence industry facilities at RAAF Base Williamtown.

Mr Pyne said both BAE Systems Australia and Raytheon Australia had signed contract extensions with Defence securing the jobs of hundreds of workers which would drive growth in the local economy. The Minister made the announcement during his first trip to NSW as Defence Industry Minister. 

“These are exciting times for Defence industry and deliver on the Turnbull Government’s commitment to growing Australian industry as outlined in the Defence White Paper,” Mr Pyne said.

“Valued at approximately $200m, I am pleased to announce that BAE Systems Australia has won a two year extension to support the Hawk Lead-In Fighter ensuring ongoing work for approximately 300 people at RAAF Base Williamtown, NSW and RAAF Base Pearce, WA.

“The Hawk, as the training aircraft for the Classic Hornet and Super Hornet fleets as well as the Joint Strike Fighter, is incredibly important in Australia’s combat training capability, providing experience for our trainee strike and fighter pilots as well as the Air Combat Officers.”

Minister Pyne said he was also pleased to announce an extension to the Air Combat Training Services Support Contract for the ongoing sustainment and operation of the Air Combat Group's Hornet, Super Hornet and Growler Aircrew Training Simulators Systems.  

“This extension awarded to Raytheon Australia and its subcontractor Milskil, is valued at approximately $100m and brings together separate contracts for the management and execution of training and support services for Classic Hornet and Super Hornet platforms currently being undertaken by Raytheon Australia and Milskil,” Mr Pyne said.

“It also adds the EA-18G - Growler Training Support Services, support to the Spiral Upgrade program and additional services including Force Generation Services.

“The revised contract will sustain approximately 50 jobs, supporting Air Combat Capabilities located at RAAF Bases Amberley (QLD), Williamtown (NSW) and Tindal (NT).   

“The contract will provide management, aircrew training services delivery, engineering, training device maintenance and operation, force generation and general support services for the RAAF’s Classic Hornet, Super Hornet and Growler aircrew training simulators and maintenance training devices.”

The Minister’s visit to NSW also included a roundtable discussion with key defence industry stakeholders across the state and meetings with the state government.

The trip reinforces the Government’s commitment to forming a new partnership with Australian defence industry with a national approach being taken to ensure that Defence gets the equipment, systems and personnel it needs now and into the future.

www.defence.gov.au

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CONFERENCE organisers can put colour into their next event by meeting with 80 key venues, hotels and suppliers in Brisbane next week.

Brisbane Pop-Up will see the city’s event products and services gather under the one roof for just over two hours at Brisbane City Hall on Wednesday 31 August.

Brisbane Convention Bureau General Manager Rob Nelson said Brisbane Pop-Up enabled conference organisers to seek out a kaleidoscope of products and suppliers for their events in the one hit.

New products attending include Brisbane’s first Art Series hotel The Johnson, Alex Perry Hotel & Apartments, Rydges Fortitude Valley and Howard Smith Wharves.

“Brisbane Pop-Up gives business event planners the opportunity to take their next event from ordinary to extraordinary by meeting with the city’s suppliers at the one time and in the one spot,” Mr Nelson said.

“Attendees can stay for as little or as long as they like to source contacts and new ideas for their next event.”

Attendance at Brisbane Pop-Up is free for registered guests and includes lunch and prize giveaways from the participating exhibitors.

For more information, go to http://www.choosebrisbane.com.au/conventions

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THE RECENT announcement by Telstra of a $1.5 billion share buy-back has sparked a call from the Institute of Public Accountants (IPA) for the government to review the revenue leakage generated through off market buy-back schemes.

“In this difficult, fiscal deficit environment that Australia finds itself in, it’s time to have a look at the off-market share buy-back scheme loophole that continues to reduce the Commonwealth revenue line,” said IPA chief executive officer, Andrew Conway.

“Off-market share buy-backs are different to on-market shares bought directly through the ASX. They comprise of a capital and dividend component and are offered to all shareholders on an opt-in basis. If the shares were sold on-market there would not be any dividend component and the proceeds would be generally capital gains or losses. 

“People on higher marginal tax rates receiving a dividend have to pay ‘top-up’ tax and are therefore, much less likely to participate in off-market share buy-back schemes.

“This creates an inequitable distribution of franking credits than would ordinarily be the case had the company paid the dividend equally amongst all shareholders. Off-market buybacks are mostly attractive to nil rate or low tax paying shareholders.

“For entities that pay no tax and superannuation funds paying no tax or up to 15 percent tax, share buy-backs can be a genuine benefit as they receive the additional incentive of an imputation rebate directly from the Government.

“While buy-backs may be a useful tool for corporate entities in terms of capital management, they come at a cost to the taxpayer, as Treasury coffers miss out on top up tax due to the skewed distribution of franking credits.

“Streaming of franking credits to specific classes of shareholders (ie those paying nil or low tax) is normally caught by anti-avoidance streaming rules. 

“If more major listed entities engage in off-market share buy-backs the revenue leakage cannot be ignored while we are running historically high budget deficits and likely to do so in the short to medium term.

“The Government needs to seriously consider the tax treatment of off-market share buy-backs, for the benefit of all taxpayers,” said Mr Conway.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than with more than 35,000 members and students in over 65 countries.  The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.  

publicaccountants.org.au

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