VICTORIAN business sentiment about the Victorian and Australian economies over the next year has risen strongly, according to the Victorian Chamber of Commerce and Industry’s Survey of Business Trends and Prospects released today.

The Victorian Chamber’s Survey of Business Trends and Prospects summarises the views of over 500 metropolitan and regional Victorian businesses across seven major sectors.

Over the December quarter 2015, 23 percent of respondents said they anticipate stronger national economic growth over the next year. Sentiment for the Victorian economy also rose, with 23 percent of respondents also expecting better economic conditions in the year ahead.

Businesses reported growth in net sales, exports, employment and investment in plant and equipment during the December quarter. However, wages and other labour costs also continued to rise, squeezing profits.

“Despite the rise in business sentiment, business confidence remains fragile and more must be done to sustain and grow this newfound optimism,” said Victorian Chamber Chief Executive Mark Stone.

“These findings point to an opportunity for both state and federal governments to deliver business-focused 2016-17 budgets that convert this sentiment into medium and long-term economic growth and job creation.

“Victorian business is looking to governments to deliver budgets that reduce the cost of doing business, drive productivity through major infrastructure projects, boost workforce skills and grow our international trade capabilities.”

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

ENDS

WITH the shifting sands on tax reform and the GST debate wavering, talk of losing work related deductions is a genuine threat to taxpayers’ rights, according to the Institute of Public Accountants (IPA).

The House of Representatives Economic Committee is currently investigating trading tax deductions for lower tax rates and is due to report at the end of February.

“While a reduction in personal income tax is an attractive proposition to most people, it will not compensate the majority for the loss in having the right to claim legitimate work related deductions,” said IPA chief executive officer, Andrew Conway.

“Under such a proposal, up to nine million Australian taxpayers would lose their existing ability to claim deductions relating to expenses incurred in earning their income; a fundamental entitlement under our tax system.

“And employees should not be under the false assumption that employers will pick up the slack.  Most businesses in Australia are small businesses who can ill afford to fund the shortfall.

“Small businesses in particular will be affected where an employee chooses not to buy tools of trade, such as mobile phones and laptops, because they will no longer be able to claim them as a legitimate deduction. 

“Loss of essential tools of trade will lead to further deterioration of Australia’s already declining productivity.

“Taxpayers may not be aware that self-education expenses are a component of work related deductions.  Any talk of losing the ability to claim a deduction for self-education is contrary to the Government’s push for innovation,” 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.   

ends

The Standing Committee on Indigenous Affairs is inquiring into models of schooling, including residential schools that are found throughout Australia. We want to identify what works for Aboriginal and Torres Strait Islander students, their families and communities, as well as final high education and training or employment outcomes.

Thursday 11 February, 11.30 am – 1.00 pm
Committee Room 1R4

11.30 am Prime Minister’s Indigenous Advisory Council

• Mr Warren Mundine, Chairman
• Mrs Leah Armstrong, Member
• Mr Andrew Penfold, Member

12:15 pm Australian Indigenous Education Foundation

• Mr Andrew Penfold, Executive Director
• Ms Renee Steenstra, Projects Director

Further information on the inquiry, including a link to an online questionnaire for Aboriginal and Torres Strait Islander students, their families and educators, can be found on the inquiry website at www.aph.gov.au/educationalopportunities. The Committee will also continue to accept submissions to the inquiry throughout February 2016.

The public hearings will be webcast live at http://www.aph.gov.au/News_and_Events/Watch_Parliament.

ends

THE House Tax Committee will hold a public hearing tomorrow with tax advisory bodies. The hearing will set the scene for the Committee’s public hearing with the Commissioner of Taxation and the Inspector-General of Taxation on Wednesday, 24 February 2016.

The ATO is working with tax agents on several IT initiatives. For example, the ATO is maintaining current systems for longer to help tax agents change to new platforms; and has agreed to improve its IT systems to help tax agents and their clients.

However, tax groups have also raised concerns. These include:

• how soon the ATO will make promised improvements to its systems
• whether pre-filled data is accurate
• whether ATO actions will interfere with the agent-client relationship
• whether the new standard business reporting system will handle increased demand in Tax Time 2016.

The Committee Chair, Mr van Manen, said, “The ATO is a lead agency in the Governments’ drive to be more efficient and provide better services online. We support the ATO’s work here. But the ATO needs to effectively involve the tax community and ensure changes meet their needs. We look forward to their views and their suggestions for improvements.”

The hearing will discuss other topics in tax, including the cash economy, the ATO’s standards of customer service, the tax gap, and changes in how the ATO manages tax disputes.

Public hearing program
Wednesday, 10 February 2016
Committee Room 1R1
Parliament House, Canberra

Time
4.10 pm – 5.30 pm

Organisations
Chartered Accountants Australia and New Zealand, Council of Small Business Australia, CPA Australia, the Institute of Public Accountants, and the Tax Institute.

For media comment: please contact Jessica Reid on 0437 731 858.

For information about the inquiry: please contact the committee secretariat by telephone (02) 6277 4821 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it. or visit the committee website www.aph.gov.au/taxrev

Live broadcast: go to www.aph.gov.au/live

ends