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Ombudsman welcomes SME Loan Guarantee Scheme extension

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said the government’s extension to the Coronavirus SME Guarantee Scheme would allow small businesses to access the working capital and investment funds they need.

The second phase of the scheme comes into effect from October 1, 2020, and has been expanded to offer loans up to $1 million for a maximum term of five years.

Under the scheme, the government, in partnership with 44 approved lenders, will guarantee 50 percent of new, unsecured loans to SMEs. 

“We support this next phase of the Coronavirus SME Loan Guarantee Scheme, which aims to help businesses emerge from hibernation and adapt to COVID-safe protocols so they can continue to operate and ultimately grow,” Ms Carnell said.

“Crucially, the extended terms of the scheme provides small businesses more affordable credit over a longer period so they can invest in their future.”

Small businesses with a turnover of up to $50 million can apply for the loans between October 1, 2020 and June 30, 2021.

“These loans are unsecured and that means you don’t have to provide your home as security for the loan,” Ms Carnell said.

“The new loan will have a maximum term of five years – up from three. This time round, lenders have discretion to offer a loan repayment holiday and interest accrued over that period will be spread over the course of the loan. 

“While this is a good option for viable small businesses that have the capacity to grow, it is always a good idea to seek advice from a trusted, accredited financial advisor before entering into a loan.”

www.asbfeo.gov.au

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TPB bans agent for sustained and systemic SMSF Auditor Number misuse

FOLLOWING AN AUDIT and subsequent referral by the Australian Taxation Office (ATO), the Tax Practitioners Board (TPB) undertook an extensive investigation resulting in the registration of Gold-Coast based tax agent Edward Mark Purnell-Webb and his business Superannuation Administration Specialists (QLD) Pty Ltd being terminated and both were banned for four years.

Mr Purnell-Webb had lodged more than 170 returns for self-managed superannuation fund (SMSF) clients where he claimed the funds had been independently audited, but the investigation found no audit had been conducted. Therefore, the TPB considered that Mr Purnell-Webb had undermined the superannuation system and was no longer trustworthy to perform the functions of a registered tax agent.

Speaking about the case, TPB chair Ian Klug said, "Mr Purnell-Well has shown himself to be a risk to consumers. The TPB has an important role in consumer protection and maintaining the integrity of the tax practitioner profession. Misconduct of this kind undermines the integrity of the entire SMSF regulatory regime.

"This decision serves as a warning to other tax practitioners who may be thinking of engaging in this kind of egregious behaviour." 

In a separate investigation, the TPB has also reviewed 74 tax agents referred to them by the ATO for potentially reporting incorrect SMSF Auditor Numbers.

ATO Deputy Commissioner John Ford said, "Approved SMSF auditors have a critical role in helping to maintain the health and integrity of the SMSF sector through the annual audit of each SMSF.

"SMSF trustees deserve to have confidence in the integrity of tax professionals. They expect them to accurately report their information to the ATO. By disregarding the strict rules, they are not only breaking the law but they are also letting down trustees who have entrusted their affairs to be handled professionally," Mr Ford said.  

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_au, Facebook and LinkedIn

Queensland’s resources companies invest $22 billion locally

LOCAL BUSINESSES across Queensland are receiving a significant financial boost from resources companies with a 16 percent increase in local spending over 12 months.

QRC chief executive Ian Macfarlane said the industry’s latest Local Content report found buying locally was a win-win for the industry and local communities.

“Expenditure from the resources sector with Queensland suppliers jumped from $19.3 billion in 2017-18 to $22.4 billion in 2018-19 which is the highest investment recorded in four years,” Mr Macfarlane said.

“Almost $70 million was invested with Indigenous businesses which is a 72 percent increase on the $40.5 million in 2017-18. The total proportion of expenditure with Queensland suppliers has increased to 71 percent of all spending ($31.5 billion). 

“This means jobs now and on-going jobs for regional Queenslanders and companies are benefiting from the significant increase in capabilities from the well-established supply hubs in Mackay, Rockhampton, Gladstone and Toowoomba along with south east Queensland," Mr Macfarlane said.

“Our sector’s economic reach is far greater than the communities in which we operate with Mackay and Brisbane accounting for the two largest local government areas for spending and neither have a mine or a gas well.

“Queensland’s resources sector understands small businesses are the lifeblood of regional economies and they will be a key part in powering our State’s jobs growth post COVID-19.

“By spending locally the resources sector promotes the long-term sustainability of local economies and builds partnerships with communities through mutually beneficial relationships.

“In the last 10 years (2009-10) the sector has spent $232 billion with local businesses in Queensland.

“A clear message from this year’s case studies is buying locally is not just good business, it’s often a fast-track to innovation through the state’s growing Mining, Equipment, Technology and Services (METS) sector.”

Mr Macfarlane said the results were calculated before the impacts of COVID-19 and if industry was to continue to spend with local businesses it needed greater certainty around investment.

“The resources sector needs the government to endorse our recovery plan to reduce red tape, streamline project assessment and approval processes and provide royalty stability over 10 years," he said. "The QRC’s comprehensive 40-point plan has been presented to the government’s Queensland Industry Recovery Alliance and all members of parliament.” 

www.qrc.org,au 

Link to QRC's recovery plan

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AIIA supports Prime Minister's skills announcement

FOLLOWING the latest announcements regarding investment into the current and future Australian workforce, the Australian Information Industry Association (AIIA) has welcomed the Morrison Government’s $2 billion 'JobTrainer’ plan to help school-leavers and the unemployed learn new skills.

AIIA CEO, Ron Gauci said, "The AIIA supports micro-credentialing courses and we encourage school leavers and young people to attain skills in IT and have a long and successful career in an industry where jobs are in demand - particularly key technical areas such as artificial intelligence & data, cloud computing, cyber security, automation and internet of things."

He said the AIIA also recognised the importance of gender imbalance that currently exists in STEM. As detailed in a recent set of recommendations put to Australian Government as part of the AIIA White Paper titled Building Australia’s Digital Future in a Post-COVID World, he said, the issue starts in primary learning and continues through to university where almost 80 percent of males complete a STEM qualification compared with 20 percent of women.

"The AIIA are supportive in encouraging opportunities for young women and look forward to having discussions with the National Skills Commission on this matter," Mr Gauci said.

The AIIA White Paper also made the following additional recommendations to government regarding skills shortages. AIIA is asking the government and National Skills Commission to consider:

  • Updating the current JobKeeper payment scheme with a portion of the current funding allocated to training credits for employers to reskill their workforce.
  • Implementing a nationally recognised lifelong learning framework with skills passport to capture digital skills across VET, University and micro-credential certifications.
  • Issuing government credit to employees to promote lifelong learning and up-skilling.

Jointly funded by all levels of government, $1billion,will go towards 430,000 new training courses that meet the needs identified by the National Skills Commission. This will be led in consultation with the states and territories.

The AIIA said the ICT industry needs to be a part of these crucial conversations.

“The AIIA supports the Prime Minister’s JobTrainer announcement and are encouraged to lead an increased profile of the available IT training packages - in turn, reducing barriers of entry for potential workers into the digital economy," Mr Gauci said.

“The funding is a step in the right direction for a post-COVID recovery Australia, however we need more focus on agile training packages that are able to react faster to the emerging opportunities and new skills required for the technology industry. It is clear that the system of training to address skills needed by employers is fractured; both the policy environment and the qualification levers are siloed and inconsistent.

“We encourage an open dialogue with the National Skills Commission and ask that they work with the IT and tech industry in an effort to deliver the skills required to drive jobs in this field - effectively championing and becoming a global leader in digital sovereignty.”

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Ombudsman applauds comprehensive NAB SME COVID recovery report

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said a new report released today by NAB provides comprehensive analysis on key SME pain points and reforms to support SMEs impacted by the COVID crisis.

Ms Carnell said the Supporting Economic Recovery – What We Can Do For Small Business report commissioned by NAB, reveals the extent to which small business’ efforts to grow their business are hampered by unnecessary burdens.

“This report confirms the enormous pressures small businesses are under and the need for reforms to help these SMEs – many of which were viable and strong just a few months ago – get back on their feet and thrive again,” Ms Carnell said.

“Many of the reforms recommended in this report are simple and will make it easier to do business - which of course has broader economic benefits.

“The report shines a light on the difficulties small businesses face when hiring new workers, with owners spending up to 18 hours on compliance before hiring their first employee. That’s about five times more than a large business with more than 200 employees.

“It takes time to understand awards, pay rates and other obligations. This is where regtech could be a game-changer for small businesses trying to navigate our complex regulatory system," Ms Carnell said.

“Put simply, small businesses will be more likely to hire new staff if it’s easier to do.”

The report also finds red tape costs small businesses $9.3 billion per year, with seven out of 10 reporting government red tape was a burden that detracted from their business.

“My office has made a number of recommendations in regards to ways government could be cutting red tape,” Ms Carnell said.

“This report backs many of our recommendations, particularly in relation to tax compliance, where the cost for small businesses ($90 per $1,000 turnover) is 225 times higher than the cost for big business ($0.40).

“Overall, I believe this report and its eight-point package of reforms is worthy of government implementation.” 

www.asbfeo.gov.au

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JobTrainer skills package meets the needs of SMEs: Ombudsman

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the Federal Government’s $2 billion JobTrainer skills package, saying it will deliver the skilled workers that SMEs need.

The JobTrainer package will support SMEs employing apprentices and trainees with a 50 percent wage subsidy, up to $7,000 per quarter.

Ms Carnell said the original package had been expanded for an additional six months to end in March 2021 and is now available to businesses with less than 200 employees for apprentices employed from July 1, 2020.

“This is an excellent initiative that shows the government is responding to the needs of SMEs,” Ms Carnell said.

“This program expansion will mean up to 90,000 SMEs will be supported in keeping their apprentices and trainees in work.”

JobTrainer will also provide 340,700 training places to help people access short and long courses to develop skills in growth sectors.

“Importantly, this program is offering free or low-cost training to people in fields of study where jobs are available,” Ms Carnell said.

“It also provides SMEs with the skilled workers they need right now.

“As our COVID-19 Recovery Plan points out, small businesses consistently report that availability of suitable labour remains a major challenge. This problem has been even more pronounced in regional and remote areas.

“JobTrainer addresses these issues as well as the fact that the jobs and skills SMEs will need coming out of this crisis will likely be different to those that have already been lost," Ms Carnell said.

“The package will provide school leavers with a pathway to practical qualifications and older people out of work with the opportunity to retrain at very little or no cost. 

“The measures announced today will be a significant contribution to our national economic recovery.”

www.asbfeo.gov.au

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JobTrainer package will keep apprentices in jobs and new opportunities In building and construction

THE $2 billion JobTrainer package announced by the Federal Government is a great move that will keep young women and men in the building and construction industry working, according to Master Builders Australia.

Master Builders said JobTrainer would also provide hope and opportunity for those whose jobs have been lost in the economic devastation wrought by COVID-19.

Denita Wawn, CEO of Master Builders Australia said, “The building and construction industry trains more apprentices and provides more full-time jobs than any other sector in the economy. We look forward to being involved in the implementation of this $2 billion package.

“With the support of measures like JobTrainer, HomeBuilder and hopefully more stimulus measures and policy reforms in the future our industry will play a vital in rebuilding Australia,” Ms Wawn said.

www.masterbuilders.com.au

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Defence relationships in the Pacific to be re-examined in new Parliamentary hearings

AUSTRALIA's Defence relationship with Pacific Island nations will be re-examined in the context of the Pacific Step-up as two days of public hearings get underway in Canberra.

The Defence Sub-committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade will hear from academics, Government Departments and Non-Government Agencies across the two days to help explore how far Australia’s activities correspond to the needs of our partner nations in the Pacific and how they might be better co-ordinated.  

Sub-Committee Chair Andrew Wallace said the public hearings are an important opportunity to build on the evidence already received through written submissions and will help the Sub-Committee make a real contribution to understanding the effectiveness of Australia’s defence engagement with the region at a complex time.

"This is a chance for us to hear in more depth from some of the best-informed experts in the field. In addition to the Departments of Foreign Affairs and Trade and Defence, we are looking forward to hearing from academic witnesses from institutions including the Australian National University and Western Sydney University," Mr Wallace said.

"Combined with the evidence we have already received from governments including those of Tonga, New Zealand and the Philippines, and the information we have from agencies on the ground, I believe this Sub-Committee will have all the insight we need to help the government to make the most of Australia’s defence work with our Pacific partners."

Further details about the about the inquiry, including terms of reference, details on how to contribute a submission and, when available, details of public hearings and roundtable discussions, can also be obtained from the Committee’s website.

Public hearing details

Date: Wednesday 15 July 2020
Time: 8.50am to 4:30pm
Location: Committee Room 2R1, Parliament House, Canberra.

Date: Thursday 16 July 2020
Time: 9am to 2pm
Location: Committee Room 2R1, Parliament House, Canberra.

The hearings will be audio streamed live at aph.gov.au/live

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COVID-19 inquiry to examine exports

A PARLIAMENTARY inquiry into the impact of COVID-19 on Australia’s defence, trade and international relations will turn its attention to Australia’s export sector in a public hearing tomorrow.

Senator David Fawcett, Chair of the Parliament’s Foreign Affairs, Defence and Trade Committee, said many sectors of the export industry have been hit hard by COVID-19 although Government support to ensure freight capacity remains available has enabled some exports to hubs such as Singapore and Hong Kong to continue.

‘Like many other sectors of the Australian economy, Australia’s exporters have struggled during the pandemic,’ Senator Fawcett said.

"While much focus has been on supply chains that Australia draws from, it is also the case that we are a major supplier for other nations. At tomorrow’s hearing, we’ll explore what else Australia can do to support our export sector.

"Importantly, the Committee will explore any underlying weaknesses in global supply and export systems the pandemic has revealed.  In particular, the Committee will assess how the nation can enhance its role as a supplier of choice in resilient and transparent supply chains for critical goods and services with like-minded nations."

Witnesses from the Export Council of Australia and the University of Western Australia’s Perth USAsia Centre will talk about the trade and economic impacts of the COVID pandemic on Australian businesses and about how Australia can support its export sector during and after the pandemic.

Full terms of reference for the inquiry are on the Committee website. Submissions can be made until July 17, 2020.

Public hearing details

Date: Thursday 16 July
Time: 3pm – 4.30pm AEST 
Location: By teleconference

The hearings will be audio streamed live at aph.gov.au/live

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Regtech key to cutting red tape for small businesses: Ombudsman

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell says government investment in regtech would be an effective way to cut red tape for small businesses.

Appearing before a Senate Select Committee hearing today on Financial and Regulatory Technology, Ms Carnell said the emergence of regtech created an opportunity to make life easier for small businesses.

“Research shows us that a quarter of small businesses spend 11 hours a week or more on compliance and close to half estimate the annual cost of compliance is $10,000 plus,” Ms Carnell said.

“Regtech uses information technology to simplify regulatory processes for the end user. It’s a potential game-changer for small businesses trying to navigate Australia’s complex regulatory system.”

The Ombudsman has made a number of key recommendations in regards to key areas where regtech could be implemented including award simplification, tax requirements, skills and training, government procurement and OH&S.

“With effective use of regtech, the government could streamline processes and reduce the burden on small businesses to interpret and implement complex regulations,” Ms Carnell said..

“This would be particularly useful in the industrial relations space where regtech solutions could ensure small businesses are paying wages and entitlements correctly and on time. We’ve recommended the Fair Work Ombudsman accredit regtech solutions for this purpose.

“In addition, government procurement would be optimised with digitisation. Regtech could provide small businesses with easier access to panels and demonstrate ongoing compliance. It could also simplify the tender process for small businesses.

“Ultimately the government has an opportunity to modernise their systems now to reduce red tape so that small businesses can develop the skills and products Australia needs to remain globally competitive.”

www.asbfeo.gov.au

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ASIC oversight hearing

COMMISSIONERS of the Australian Securities and Investments Commission [ASIC] will appear before the Parliamentary Joint Committee on Corporations and Financial Services at a public hearing via videoconference on Wednesday July 15, 2020.

The committee will review the performance and operations of the corporate regulator, with a particular focus on ASIC’s performance during the COVID-19 crisis.

This will be the fourth public hearing with ASIC before the Corporations and Financial Services committee in this Parliament.

Committee Chair Senator Paterson said, “This hearing is an opportunity for the commissioners of ASIC to update the parliament on the measures they have taken in response to COVID-19 and their outlook for the financial sector in the months ahead.”  

Public hearing details

Date:  Wednesday, 15 July 2020
Time:  9:30am to 1pm
Location: Videoconference
The hearing will be broadcast live at aph.gov.au/live

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