THE Australian Parliament’s newly appointed Trade and Investment Growth Committee today commenced its inquiry into the business experience in utilising Australia’s existing free trade agreements (FTAs) including New Zealand, Singapore, Thailand, the United States, Chile, the Association of Southeast Asian Nations (along with New Zealand) and Malaysia.

In announcing the inquiry, the Chair of the Committee, Mr Ken O’Dowd MP said, "Australia is the world’s 12th largest economy with its major trading partners being China, Japan, and the United States. Australia has a number of long-standing FTAs with other countries including with ASEAN-New Zealand, Chile, Malaysia, United States, Singapore, and Thailand. These FTAs provide an important opportunity for Australia to boost its trade with these countries and benefit the future growth of Australian business."

The committee will examine the opportunities and challenges faced by Australian business arising from Australia’s existing FTAs with a view to identifying how Australia might best benefit from the recent and proposed North Asia FTAs.

"While FTAs create a framework for increased trade and investment it is important to address any barriers preventing realisation of these benefits and address them in future agreements," Mr O’Dowd said.

The committee was established to examine measures to further boost Australia’s trade and investment performance, including barriers to trade, reduction of red tape, and structural challenges and opportunities for the Australian community. As part of its remit, the committee will focus its examination on the experience of business in using Australia’s existing FTAs.

Written submissions from interested individuals and organisations are invited by COB Friday, 26 June 2015. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account. Please do not send submissions directly to the committee’s email inbox.

Guidance on preparing a submission is available on the committee’s website at www.aph.gov.au/jsctig

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VECCI Chief Executive Mark Stone has welcomed the Federal Budget, which contained a number of positives for Victorian small business including a reduction in the corporate tax rate, a tax discount for unincorporated businesses, asset right-off relief and support for start-ups.

"These measures will lower costs, improve cash flow and help stimulate new investment and jobs growth," Mr Stone said.

VECCI rated the Budget highlights for business to include: 

Jobs and Small Business Package

- The announced 1.5 percentage point company tax cut (to 28.5 per cent) for incorporated small businesses (with annual turnover of less than $2 million) will assist Victorian small businesses to remain competitive, stimulate new investment and drive jobs growth.

- To ensure support is available for all small businesses, unincorporated small businesses (with annual turnover of less than $2 million) will be eligible for a 5 per cent tax discount up to $1,000 a year.

- All small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000.

- Red tape will be reduced as all small business work-related portable electronic devices are fringe benefits tax free.

- Victorian start-ups will be able to immediately deduct professional costs associated with starting a business. A streamlining of business registration processes will make it easier to start a new business.

- Small businesses will also benefit from a new capital gains tax roll over relief when changing their legal structures and the expansion of tax concessions for employee share schemes. Obstacles to crowd sourced equity funding will also be reduced. 

Jobs

- Job creation more broadly has been spurred by budget measure to help Victoria’s unemployed find and move into work, including:

•      - Stronger support for youth transition to work.
•      - Simplified work experience arrangements and greater flexibility in the operation of wage payment subsidies.
•      - A reinvigoration in the Restart wage subsidy to help business employ older workers. 

Trade

- Victorian exporters looking to leverage opportunities created by recent Free Trade Agreements (FTA) with Japan, China and South Korea will welcome the $25 million commitment to establishing a FTA dashboard. We look forward to further details of this measure. 

- The budget demonstrates responsible economic management. The government has identified $10.9 billion in expenditure savings over the next four years and its fiscal strategy will see the budget deficit fall steadily to $6.9 billion by 2018-19.

- Many of the budget measures are consistent with VECCI Small Business Taskforce’s “Small business. Big opportunities” recommendations to support small business growth. 

- As part of the united chamber movement’s national “Small Business. Too Big to Ignore” campaign prior to the 2013 federal election, we commend the Federal Government’s focus on supporting small business growth and entrepreneurship.

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

vecci.org.au  

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THE 2015-16 Federal Budget has finally delivered some good news for small businesses according to the Institute of Public Accountants (IPA).

"As promised the Government has delivered a 1.5 percent corporate tax cut for those small businesses which are incorporated and based on the existing $2 million turnover test,” said IPA chief executive officer, Andrew Conway.

“Our concern that only incorporated businesses would see such a tax break has been alleviated with non-incorporated entities receiving a tax discount of 5 percent up to the cap of $1,000.

“This is the first small business tax cut in 13 years, so it is long overdue.

"We are very pleased, therefore, to see the Government adopt the IPA's signature tax policy of reducing the tax rate for small unincorporated businesses.

“Particularly pleasing is the increase in the accelerated depreciation write off threshold of $20,000 (currently $1,000 and previously $6,500 under the previous government), which is of significant assistance to small business cash flow. This will have major flow on effects for the broader economy.

“Other initiatives revealed at tonight’s Budget include significant reductions in red tape through the streamlining business registration initiative; and a special write-off for new start up companies to help with professional expenses. We look forward to more detail on how these measures will be administered.

“All in all, a good package to drive small business productivity and growth; which are key ingredients required right now for Australia’s economic wellbeing and prosperity,” said Mr Conway.

 www.publicaccountants.org.au

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THE Australian Retailers Association (ARA), representing the majority of Australia retailers, has welcomed moves in the just-released Federal Budget to get spending under control with further reductions in the public service while maintaining incentives for business and consumers.

ARA Executive Director Russell Zimmerman said the ARA commends the Government on making a path to deficit reduction, introducing new measures to support small business and delivering some stimulus to the hip pocket.

“The ARA is pleased to see the $5.5 billion Jobs and Small Business Package, which will help small businesses and the millions of people they employ. This initiative will see a 1.5 percentage point company tax cut for incorporated businesses with turnover under $2 million, and a 5 percent tax discount, up to $1,000 a year, for other businesses as well as further red tape reduction measures. Small businesses will also see an increased instant asset write off of up to $20,000 for items purchased between Budget night and June 30, 2017.

“The ‘Netflix’ tax (which will see popular overseas media streaming services such as Netflix and Apple charged GST on their downloads) has also been welcomed by retailers.

“While this tax is certainly a positive step, we must now ensure GST collection is extended to low value parcels. It should be just as easy to collect GST from Amazon as it is to collect GST from Netflix and Apple, meaning there is little excuse for the Federal and State Government’s not to move on collecting all GST on products under $1000 from overseas. 

“State Governments are losing billions of dollars in GST revenue which could support teachers and emergency services in our communities. Australian retailers are also suffering from an uneven playing field, and this is costing many local jobs.

“The ARA has been leading the campaign to fix the under $1000 GST loophole for goods bought from overseas and is concerned that tonight’s budget did not offer any specific remedy to this issue. We do, however, commend Assistant Treasurer Josh Frydenberg on his leading position and commitment to solving this issue once and for all.

“It seems the Government has learned from the last year and this budget recognises how the digital economy has changed the business landscape in Australia. What we need to see now is every effort made to strengthen our tax system as well as build consumer confidence with a clear long term plan from Government to support consumers and businesses alike,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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