THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell is reminding small businesses they have until September 7, 2020, to declare any errors in superannuation payments to staff, without facing harsh penalties.

“This applies to the superannuation guarantee amnesty legislation passed from July 1,1992 to March 31, 2018,” Ms Carnell said.

“Small businesses should speak to their trusted, accredited financial advisers now to get their affairs in order before it’s too late. Payment plans are available to small businesses unable to pay the lump sum amount owed, so long as they get on the front foot and make contact with the ATO, before the September 7 deadline.

“However, only payments made before September 7 will be eligible for the tax deduction benefit. To qualify for the amnesty, employers have to come forward voluntarily, without direct prompting from the ATO and agree to pay all employee entitlements plus interest.

“Most small businesses already do the right thing, with 95 percent complying," Ms Carnell said. "The amnesty will give small businesses a chance to ensure they are compliant because all Australian workers deserve to be paid the entitlements they are owed.

“If you don’t disclose unpaid super under the amnesty and you are found to have been non-compliant, you will face a minimum penalty of 100% of the superannuation owed, have to pay $20 administration fee per employee per quarter and you cannot deduct any payments made.”

More information can be found at ato.gov.au/sgamnesty

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SOME of Australian industry’s biggest companies are supporting a new initiative that will see them work together to better understand pathways to achieving net zero emissions in supply chains.

BHP, Woodside, BlueScope Steel, BP Australia, Orica, APA Group, Australian Gas Infrastructure Group and Wesfarmers Chemicals, Energy and Fertilisers – which together represent 14 percent of Australian industrial emissions – have signed on to the Australian Industry Energy Transitions Initiative.

They are joined by National Australia Bank, Schneider Electric and AustralianSuper, who represent the broader system of investments, services, products and knowledge that will be key to supporting industry action towards net-zero supply chains. 

Independent, not-for-profit bodies ClimateWorks Australia and Climate-KIC Australia are conveners of the Australian Industry ETI, in collaboration with the Energy Transitions Commission. 

It has been developed with the generous support of philanthropic donations, company contributions and funding from the Australian Government, through the Australian Renewable Energy Agency (ARENA). It is supported by the Australian Industry Group and the Australian Industry Greenhouse Network, with research partners including CSIRO and the Rocky Mountain Institute.

The initiative aims to set Australian industry up for a success in a decarbonised global economy, by harnessing industry knowledge to develop pathways and actions that can accelerate emissions reductions across whole supply chains – in sectors where abatement has traditionally faced structural challenges. 

Specifically, it will focus on opportunities across five supply chains which collectively contribute more than a quarter of Australia’s annual greenhouse gas emissions and generate exports worth around $160 billion. These include steel, aluminium, liquified natural gas, other metals (such as lithium, copper and nickel) and chemicals (including explosives and fertiliser).

The Australian Industry ETI is chaired by Simon McKeon AO, chancellor of Monash University, former CSIRO chairman and former Australian of the Year. He said collaboration, experimentation and shared knowledge would all sit at the heart of the initiative’s work.

“We know that we can find solutions more quickly, and start implementing them, if we’re encouraging collaborative learning and knowledge sharing, especially when it comes to new technology,” Mr McKeon said.

“This initiative provides a platform to generate knowledge and test action through on-the-ground projects that support industry to realise the opportunities of a decarbonising global economy.” 

As global efforts to reduce emissions to net zero by 2050 continue and become more urgent, there is an increasing awareness that companies must understand their broader supply chains and help shape the decarbonisation approach across them.

Supply chains embody the highly complex and interconnected nature of the global economy, and include finance, investment and customer decisions, as well as operations such as the extraction of raw materials, processing and distribution. Tackling these complex systems presents additional challenges to industry.

The Australian Industry ETI is a collaborative effort to collectively learn, develop research and find actions that move broader industry sectors toward net zero emissions in supply chains. 

“Emissions aren’t contained within national borders and aren’t confined to what happens within a company’s four walls. That’s why a supply chain approach is vital,” ClimateWorks CEO Anna Skarbek said.

“Globally, many countries and businesses are already moving to decarbonise supply chains in heavy industry sectors. There are huge opportunities for Australian businesses if they take a proactive approach to getting into this race.

“The good news is that the Energy Transitions Commission and others have shown that technologies can eliminate the emissions from our heavy industry supply chains. Better understanding these opportunities for Australian industry will be a key focus of the initiative.

"We’re pleased to be working with Australian industry participants to develop pathways and actions to support net zero emissions across critical supply chains of the economy.”

In addition to considering opportunities across the Australian economy, the Australian Industry ETI will also have a particular focus on Western Australia.

“With mining and heavy industries driving the economy in Western Australia, focusing some of our effort there will really demonstrate what is achievable nation-wide,” said Chris Lee, CEO of Climate-KIC Australia.

“Taking a systems approach and joining up players within and across supply chains will help move past barriers that individual companies face when reducing emissions as well as support the realisation of new opportunities.”

ARENA CEO Darren Miller welcomed the initiative’s role in uniting some of Australia’s big players in industry towards a common goal of reducing emissions.

“Accelerating the uptake of renewable energy for the industrial sector is a critical part in Australia meeting its long term emissions reductions commitments,” he said. “A fast transition to renewables and alternative fuels will also help industry meet market needs as a global demand for low carbon products grows, which will produce lower energy costs and continue to support jobs in the sector.”

The Australian Industry ETI’s identification of supply chain opportunities will complement the work of other emissions reduction initiatives and programs, including the federal Technology Investment Roadmap, and international collaborations for clean energy and industry transitions. 

Other industry leaders have been invited to join the project by contacting ClimateWorks Australia or Climate-KIC Australia. Updates will be available online at www.energytransitionsinitiative.org  

Other companies in active discussion with the initiative operate across steel, aluminium, other key metals, chemicals, LNG, finance and superannuation.

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THE Retirement Income Review (RIR) must be used to strengthen and not undermine the policy foundations of Australia’s successful super system, which has given workers a chance at a dignified retirement and eased the tax burden of the aged pension, according to Industry Super Australia chief executive, Bernie Dean.

The RIR report is the first such review of the system in almost 30 years.

Mr Dean said unusually for a review of this nature, a draft was not circulated for stakeholder comment and it has relied on modelling using data not available to the public or external experts.

"The community knows that government faces a tough task, but we can't have this review remaining hidden or used as part of a secret plan for super to create a system where there are those that can have a dignified retirement and those that can't," Mr Dean said.

“Super is already a great economic leveller for most Australians but we need to do more to avoid us ending up as a divided nation, with millions of women and low-income earners scraping by just on the aged pension.

“The government needs to keep policy stable and stick with the legislated increases in super. That’s the proven and best way to get workers savings and the economy growing again," he said.

“The community know that they’ll end up carrying the can for any more policy shocks by having to work for longer to make up lost ground or paying higher taxes to support higher pension payments.”

In the interests of transparency, he said it was critical this report be immediately released to the public so its findings can be tested and verified.

The report has an opportunity to build on the successful super system with sensible evidence-based reform that helps provide members with a dignified retirement, addresses entrenched inequalities and tackles under performance while strengthening the default system, he said

If used as a stalking horse to erode the policies that underpin the system - compulsion, preservation, universality and a strong default system – workers’ retirement savings and the economy will suffer, according to Mr Dean.

He said the only way to deliver a dignified retirement is to stick to the legislated increase to the super rate to 12 percent. The increases are more important than ever after balances were hit through the government’s early release of super scheme and the Coronavirus downturn.  

Cut the rate and Industry Super Australia analysis shows more than 8 million Australians could be worse off, Mr Dean said.

For an average 30-year-old couple working full time, cutting the super guarantee increase would deprive them of up to $200,000 in super by the time they retire. During retirement they would lose up to 20 per cent of their income or between $7,000 to $10,000 a year.

Mr Dean said breaking the government’s repeated promises to stick to the legislated increase will not only force workers to either retire with less or work longer - it will undermine super funds’ investment plans to help Australian businesses and build new job creating infrastructure and property projects.  

In the last six months the landscape has dramatically shifted but the need for to go to 12 percent has become greater.

More than 2.5 million Australians have accessed the government’s early release of super scheme and at least 560,000 Australian have emptied their super accounts forcing them to start saving for retirement again.

This will dramatically change the trajectory of their super savings and a panel seriously reviewing the long-term adequacy of the system must take this into account. The review’s findings on adequacy risk lacking credibility if it ignores the impacts of the early release scheme and Coronavirus downturn on retirement savings. 

In addition to the need for a 12 per cent super rate ISA also recommends:

• Abolishing the $450 monthly threshold on super – this will be critical during and after the downturn as more Australians will likely end up in casual work, have hours reduced or will work multiple jobs.
• Better protect members' interests by removing underperforming funds from the system, and by APRA applying robust performance benchmarks to all MySuper and Choice products
• Expand workplace default coverage and strengthen the default system through merit-based selection
• Lower the Age Pension taper rate to $2 to remove a disincentive to save for middle-income Australians
• Examine tax concessions to ensure they are being targeted at those that need them the most
• Pay super on Commonwealth paid parental leave
• Increase the Low-Income Superannuation Tax Offset (LISTO)
• No change beyond the legislated age pension age
• Make super payable on pay day.

Mr Dean said the RIR panel must reject dangerous proposals that allow low-income earners to opt-out of super which would only leave them paying more tax now to then have nothing saved for their future.   

As too should attempts to raid super to pay for house deposits or mortgages – which would only erode retirement savings and increase house prices – pushing the dream of home ownership further away.  

Australia’s super system is among the best in the world, with sensible evidence-based reform we can further unlock its potential to deliver even more for Australian workers, Mr Dean said.

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A FITNESS Australia report has found more than 60 percent of businesses would last less than a month without financial support.

INDUSTRY body Fitness Australia recently released an Impact of Extending the JobKeeper Payment for the Fitness Industry Report highlighting the critical role JobKeeper has played in supporting an industry that’s designed to support Australians.

Worryingly, without JobKeeper the report found more than 60 percent of businesses, sole traders and individuals reported they would remain viable for less than a month; and 86.8 percent for less than three months.

The survey of more than 1,700 respondents represents more than 27 percent of the industry and included both businesses (including clubs, gyms and studios), and individuals (including sole traders, personal trainers and group fitness instructors) for a fair representation.

Fitness Australia CEO Barrie Elvish said the report laid bare the the impact of COVID-19, and the salvation provided by JobKeeper for businesses and exercise professionals.

“As a result of COVID-19, the sector has already faced, and will continue to face, unprecedented challenges. The introduction of JobKeeper has allowed many in the industry to stay employed, while ensuring continued access to important services for the broader community,” Mr Elvish said.

“Australia’s fitness industry plays a critical role for the Australian economy as a source of jobs, investment, spend and innovation. It also positively impacts individual’s physical and mental health, consequently supporting greater productivity and happiness across the nation.”

The Impact of Extending the JobKeeper Payment for the Fitness Industry Report found:

Gyms, clubs and studios

• · 93.4% of are relying on JobKeeper to stay afloat and keep people employed through this unprecedented time
• · 95.9% of have seen more than 20% decrease in revenue as a result of COVID-19
• · 72.9% of all those surveyed reported more than 40% decrease in revenue
• · 76.6% have lost more than 30% of their members.

Sole traders, personal trainers and fitness professionals

• · 82.5% are relying on JobKeeper to stay afloat and keep people employed through this unprecedented time
• · 90.5% of respondents have seen more than 20% decrease in revenue as a result of COVID-19
• · 78.1% of all those surveyed reported more than 40% decrease in revenue
• · 89.49% have lost more than 30% of their clients
• · 71.39% have lost more than 50% of their clients.

Mr Elvish said a continuation of JobKeeper will support a stronger Australia, fiscally, mentally and physically.

“Supporting Australia’s fitness industry by extending JobKeeper will ensure the sector can continue to be a key employer to support thousands of Australians with jobs; while supporting the broader population with improved physical and mental health outcomes,” Mr Elvish said.

www.fitness.com.au

AUSTRALIAN company EMVision Medical Devices (ASX: EMV) has successfully closed a $9million capital raising via a share placement at $1.42 led by Bell Potter Securities.

There was strong demand from both domestic and offshore institutions and wholesale investors, with bids covering the proposed placement amount multiple times. EMVision has become one of the top-performing ASX IPOs in recent years.

The funds will bolster EMVision’s balance sheet to advance development of their potentially life-saving brain scanner. The compact and transportable device aims to allow for rapid detection and monitoring of stroke in hospitals. Future generations of the device plan to provide ultra-early stroke type detection in ambulances. 

Earlier this week, EMVision released preliminary images from its ongoing clinical trial showing the device can successfully detect haemorrhagic (bleeds), and in a small patient cohort, distinguish between the two stroke types (clots and bleeds). 

EMVision managing director and CEO Ron Weinberger said, "While these results are preliminary and subject to further testing, they provide validation of the fundamental principles of the technology. We have now shown the ability to identify both stroke types, and importantly, distinguish between them. In the future our technology could greatly assist clinicians with earlier interventions and treatment choices.”

Treating stroke is time-critical. Treatment cannot begin until the type of stroke is diagnosed, with patients requiring transport to CT or MRI imaging to confirm the stroke type, meaning many patients are not diagnosed in time to receive the most effective treatment. 

EMVision’s solution is to bring stroke imaging to the patient, wherever they are located, and to help enable treatments and interventions as early as possible. The company’s first commercial device aims to offer bedside monitoring for stroke patients, a solution that does not exist today but could dramatically improve patient outcomes and lower healthcare costs. 

“The first-generation device intends to monitor progression of stroke at the bedside, detect complications or secondary bleeding and track response to treatments. Our clinical trial has also shown that the device integrates well into the hospital environment and is not invasive.” Dr Weinberger said.

Future versions of the device are also expected to provide rapid stroke decision support and triage in ambulances. This is a goal also shared by the Australian Stroke Alliance, of which EMVision is a commercial partner. Instead of transporting patients to hospital, the Australian Stroke Alliance intends to drive or fly Australian-designed, life-saving brain scanning equipment to patients, transforming their chances of survival and recovery.  

“Our vision, as a partner of the Australian Stroke Alliance, is to ensure that anyone who suffers a stroke in Australia can receive the urgent care they need, regardless of their location. And we plan to help make this vision a reality.” Dr Weinberger said.

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TODAY'S economic and fiscal update paints a sobering picture of the state of the Australian and global economy. The huge levels of government support could unfortunately only limit the negative fallout from the pandemic, not keep Australia out of recession.

CPA Australia executive general manager of policy and advocacy, Gary Pflugrath said, “The government’s support spending has allowed Australia to escape the worst of the economic impacts of COVID-19, however the negative consequences on jobs and business are likely to be felt for many years, regardless of when Australia begins to regrow.”

CPA Australia highlighted that the support the government had injected into the economy had so far saved many Australian jobs, however this was "no time to rest on our laurels". While the economy may return to growth soon, consumer spending and business investment was likely to remain subdued over the longer term, impacting jobs.

“While the extension of the JobKeeper scheme has removed the imminent threat of a September ‘cliff’, it does not mean that businesses in distress can bury their heads in the sand," Dr Pflugrath said. "They need to access professional advice to help them make the best decisions for the future of their business, themselves and their staff. With many businesses remaining in distress, government can encourage them to access that much needed advice through funding a business advice voucher.

“COVID-19 continues to pose a risk to the survival of many businesses, especially small businesses. Widespread failure or closure of such businesses would adversely impact local economies, potentially slowing the national recovery and future job creation.

“In other words, a large and disorderly spike in corporate insolvencies can create a serious problem for the economy and jobs and needs closer management,” Dr Pflugrath said.

Much still needs to be done to build the economy of the future so that the nation just doesn’t exit this crisis and return to ‘business as usual’.

“Even before this current crisis and the bushfires and floods, Australia was faced with anaemic levels of growth,” Dr Pflugrath said.  "We need an economy that is different, more dynamic and resilient; and one that considers and adapts to the needs of an environmentally sustainable world.

“Such reimaging of the economy will be critical to jobs creation, enhancing the small business sector and hastening the return to stronger GDP growth. 

“The nature of the economic recovery that follows the COVID-19 crisis will depend in part on not only on the survival of small businesses, but on whether significantly more digitally-capable small businesses emerge. This requires much higher government investment in building the digital capability of small business owners and the workforce,” Dr Pflugrath said.

Governments at all levels have done a very good job at implementing what was considered unconventional policies at the start of the crisis given the circumstance; however, the crisis should remain front and centre in future policy considerations.

“Policy options that may have been dismissed as complex, need to be revisited. There are many people of goodwill in the community that want to work with government to overcome these obstacles for the good of the nation and jobs,” Dr Pflugrath said.

About CPA Australia

CPA Australia is one of the world's largest accounting bodies, with more than 165,000 members working in 100 countries and regions and supported by 19 offices globally. Core services to members include education, training, technical support and advocacy. Employees and members work together with local and international bodies to represent the views and concerns of the profession to governments, regulators, industries, academia and the community. Visit cpaaustralia.com.au

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TODAY'S economic statement delivered by Federal Treasurer Josh Frydenberg shows the profound economic shock that the COVID-19 crisis is delivering to the economy and the community, according to Denita Wawn, CEO of Master Buidlers Australia.

“So far the Federal Government’s handling of the health and economic crisis has saved lives and thousands of businesses and jobs. But today’s statement is effectively only the quarter time siren and they will need to stay focussed on ‘Best on Ground’ performances to underpin economic recovery,” Ms Wawn said.

“Measures such as JobKeeper, HomeBuilder and JobTrainer are proving to be extremely effective but there is no doubt that more is going to be needed before we emerge from the economic wreckage of the pandemic,” she said.

“The 6 percent fall in investment in 2019/20 and 12.5 percent in 2020/21 will be particularly painful for the building and construction industry which is crucial to a strong economy.

“As the industry that provides the most full time jobs in the economy we are deeply worried about the impact of the forecast fall in demand on the industry, the viability of around 380,000 of small builder and tradie businesses and opportunities for future careers for young people.

“We need to go to a new phase where government stimulus and subsidies remain and expand while fundamental policy to maximise private investment in facets of the economy gain pace,” Ms Wawn said.

“The policy reform priorities being pursued by the government to date are largely on the money but the need for continuing IR flexibility and IR reform is now greater than ever and raises the stakes for the government’s IR working groups.

“The construction sector works under very inflexible pattern industrial agreements and our members tell us they need flexibility to deal with the effects of the COVID crisis now, not when it’s too late,” Ms Wawn said.

“The HomeBuilder grants scheme is proving to be one of the most effective government stimulus packages in decades and more highly effective measures to stimulate demand for building activity are necessary.

“With the second largest economic multiplier effect in the economy, stimulating the building and construction industry is a no-brainer.

“Master Builders also wants to see more policy reform, subsidies and stimulus to reskill and up skill people whose employment has been lost due to the pandemic for opportunities in industries like ours which has a strong track record of providing jobs on completion of skills training

“Tax reform and measures to free up investment by institutional investors like industry super funds also need to be fast tracked,” Ms Wawn said.

“With over 630,000 small businesses with between 0-4 employees on currently on JobKeeper, measures to boost the resilience of small businesses are also vital.

“Our industry is 98 percent comprised of SMEs and there are more small businesses in building and construction than any other industry. They need to support to boost their online presence, get across digital ways of doing business and better managing their businesses to survive this crisis,” Ms Wawn said.

“We know that a strong building and construction industry means a strong a strong economy and today’s update just reinforces Master Builders call for policies to ensure that private investment is maximised and supplemented by the Government in form of stimulus and subsidies in the October Budget."

www.masterbuilders.com.au

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AUSTRALIA's hotels, motels and accommodation providers have applauded the extension of JobKeeper but say additional support is critical to keep the tourism sector alive.

They say additional support from Federal, State and Territory Governments must include the extension of banking relief measures and action on the Rental Mandatory Code of Conduct.

Accommodation Australia CEO Dean Long said, “The extension of JobKeeper through to March 2021 is what our sector has been asking for and is very welcome news. The policy settings around the realignment of JobKeeper with JobSeeker are right in terms of incentivising people to work while providing the economic lifeline to keep businesses afloat as we learn to live with COVID.
 
“Our sector is a central pillar of the Australian Tourism industry and was exceptionally strong before COVID-19. As an industry, prior to COVID-19 we directly contributed more than half of the $47.5 Billion Tourism GDP and directly employed more than 113,000 Australians.
 
“While we have already done everything we can to limit the impact on our teams, our workforce has already halved. The JobKeeper extension is a welcome first step but our industry will see further job losses and business closures without additional support including the extension of banking relief measures and the Rental and Leasing Mandatory Code of Conduct.
 
“Since the beginning of March 2020, our income has decreased by more than 75 percent," Mr Long said. "Even if the flattening-the-curve strategy is successful and we have open borders, our expected recovery in March 2021 will only be 50 percent of pre COVID-19 income. Now more than ever we need our Federal, State and Territory Governments to work closely together.
 
“These measures will support an industry which has been disproportionately impacted by COVID-19 and will ensure our sector can rebound in 2021 and beyond.”

 Peak industry body, the Accommodation Association represents close to 3,500 hotels, over 150,000 rooms and nearly 100,000 employees across Australia. Accommodation contributes $17 billion to the Australian economy and is essential to the Australian tourism sector’s recovery, Mr Long said.

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