WITH ‘free childcare’ ending today, the Australian Small Business and Family Enterprise Ombudsman Kate Carnell said many women in small businesses will be faced with difficult decisions.

“For small business owners – many of which are mothers – who have been working tirelessly to get back on their feet, childcare has just become unaffordable,” Ms Carnell said.

“Many of these young families working in small businesses are relying on JobKeeper, which will not cover childcare fees reinstated from today.

“This could force parents – mothers more often than not - out of their jobs, which is detrimental to their business, their families and even worse for the economy.

“We know women make up more than a third of Australia’s small business owners (38%) and more than 5 million women work in these businesses," Ms Carnell said.

“Recent ABS labour force data shows women have been among the hardest hit by the pandemic, with the female participation rate falling dramatically.

“The government should be monitoring this situation very closely and be considering innovative ways to increase the participation rates for women to ensure productivity gains and to help those in their efforts to get their businesses back on track," she said.

“Our COVID-19 Recovery Plan makes the point that childcare is an essential service for parents in small businesses and needs to be affordable.

“There are a number of ways the government can do this, including making childcare tax-effective or by phasing in an expanded subsidy scheme, which the Grattan Institute estimates would deliver an $11 billion economic boost.

“Economists have long referred to the ‘double dividend’ of childcare increasing workforce participation rates and providing early education," Ms Carnell said.

“Equally the government should be monitoring the impact that the reinstatement of fees is having on childcare centres, many of which are small businesses, which have warned of dire consequences of the so-called snap-back to the previous system.”

www.asbfeo.gov.au

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THE FIRST HEARINGS for the Joint Standing Committee on Trade and Investment Growth’s inquiry into the need for Australia to diversify its trade markets and foreign investment profile will be held in Canberra on July 14 and 15.

George Christensen MP, Chair of the Parliament’s Trade and Investment Growth Committee, said it had become critical for Australia to review and assess its strengths and weaknesses in a context of growing international uncertainty and globalised economic interdependence.

"Adapting to and preparing for evolving market challenges is necessary to support Australian export businesses," Mr Christensen said.

"Australia needs to ensure any foreign investment is consistent with our national interest and not to the detriment of Australians."

The hearings will focus on the agricultural sector and business and industry groups. Programs are available on the inquiry website.

As part of its inquiry, the Committee is considering whether Australia is too reliant on foreign investment and any one market for exports, and the advantages and disadvantages of its current trade and investment profile.

The Committee will also examine how global crises and bilateral trade agreements affect Australia’s export and investment relationships, as well as its domestic market.

"Understanding Australia’s export capacity and foreign investment attractiveness will help Australian businesses remain competitive internationally. This supports a strong economy that keeps people in jobs," Mr Christensen said.

Further public hearings will be scheduled in August, with updates to be provided on the Committee’s webpage.

Submissions from interested individuals, businesses and organisations are invited by Friday, July 31, 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

More information about the inquiry, including the full terms of reference and details on how to lodge a submission, is available on the Committee’s webpage.

Public hearings details

Date: 14 July 2020
Time: 9am to 5pm
Location: Canberra

Date: 15 July 2020
Time: 9am to 12.30pm
Location: Canberra

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THE TEAM at SkyPoint are incredibly excited to throw open the elevator doors to their Level 77 Observation Deck and Climb experience in the heart of Surfers Paradise, from Friday tJuly 10.

SkyPoint will re-open with a COVID Safe Industry Plan in place to ensure the safety of its team members and guests remains a priority.

Guests are now able to dine, drink and enjoy the Gold Coast’s best 360-degree view from atop the Q1 building. For those who prefer a thrill, SkyPoint Climb will also re-open tomorrow, so guests can again take on Australia’s highest external building climb.

“SkyPoint is an iconic Surfers Paradise attraction and there is no better place to see the sights and surrounds of the magnificent Gold Coast. We look forward to welcoming both local and visiting guests back to the venue.” SkyPoint general manager, Dylan Hunt said.

SkyPoint opens at 10am on Friday and will be open seven days a week.

www.skypoint.com.au

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THE LATEST International Visitor Survey (IVS) results are just the first of a long set of negative quarterly results which will play out over the coming years, revealing the desperate future of Australia's export tourism industry.
 
“The March quarter IVS show the last gasps of our valuable export tourism industry as it once was,” ATEC managing director Peter Shelley said of the results.
 
“The last time we reviewed these IVS numbers we were looking at record inbound visitation of close to nine million visitors who delivered over $45 billion in spending to the Australian economy.
 
“While the industry is fully supportive of a strong health response, all tourism businesses have taken a battering in 2020, especially businesses relying on international visitors which were heavily impacted by mass cancellations off the back of the January bushfires, floods and then the pandemic which all rolled into each other," Mr Shelley said.
 
March quarter IVS figures still show some value delivered early in the year by international visitors before the borders officially closed mid March, but overall international spending was down by almost $4 billion in one quarter and visitor numbers down by 28 percent.
 
Mr Shelley said Australian tourism businesses which have traditionally had a heavy focus on catering to international visitors will need continued government support to ensure they remain capable of reigniting inbound tourism once borders reopen. 
 
“Not all tourism businesses are capable of embracing domestic tourism as their saviour as many have built their product specifically to service international visitors," he said. "Changing their business model requires investment and rebuilding that they simply either do not have or the risks outweigh the opportunity to embrace domestic tourism.
 
“ATEC’s industry survey shows 48 percent of tourism businesses derived 60-100 percent of their revenue from international visitors while 35 percent say the return of domestic tourism would make no difference to the desperate state of their business viability.
 
“We believe tourism businesses will need continued wage support along with support to manage ongoing business overhead costs in a period of zero revenue, plus stimulus restart grants. We need to retain support for businesses who are trying to starve off business failure while the international borders are closed which may be as long as a further 12 months, and then marketing funding to help restart our international trade once borders open," Mr Shelley said.
 
“Inbound tourism operators (ITOs) in particular will be a key to re-establishing an inbound visitor market and will play a vital role in supporting the delivery of international visitors to Australia in a COVID-safe way. 
 
“A ‘managed tourism’ approach using ITOs will give the government a strong framework for re-opening borders to specific markets in a controlled, safe and, most importantly, traceable manner which will be a priority in future international travel.
 
“Supporting the redesign or hibernation of these businesses will be critical in ensuring our industry maintains both the product and supply chain operations which are capable of taking us back to export success in the future and importantly, return thousands of jobs to a once valuable workforce around the country," he said.
 
“We know the government and the community understand the success of our export tourism industry and the significant economic value it can bring to our economy, and in that way will be keen to support us through this exceptionally challenging period.”

www.tourismdrivesgrowth.com.au

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THE Queensland Resources Council has welcomed the bipartisan support from Federal Labor and the LNP for the immediate approval of New Hope’s New Acland mine to stop more Queenslanders from unnecessarily losing their jobs.

QRC chief executive Ian Macfarlane said it was tragic to hear New Hope had been forced into making redundancies when the extension to the mine at Oakey on the Darling Downs had already been approved by Queensland courts.

“The Queensland Government has sat back and allowed lawfare by a small group of green activists to jeopardise the economic recovery of this State by delaying New Acland. This is a shovel-ready project that has dragged through the court system in Queensland for more than a decade and all challenges against it have been dismissed,” Mr Macfarlane said.

“Now the activists have taken the project to the High Court which could delay the start by years more. Queensland needs jobs now and I can tell you these workers and their families need these jobs.

“The State Government is not powerless here. It could step in at any time to approve the mining lease and associated water licence.

“In September, the Premier said the hold up for a decision was to wait for the finalisation of proceedings in the Court of Appeal. The Queensland Court of Appeal has since made its determination which would allow the New Hope expansion to go ahead with the appropriate approvals.

“There’ll be no jobs created by delays in a court room and let’s be clear, at risk here is not just hundreds of New Acland jobs and not just thousands of resources jobs, but the thousands more jobs with all major projects, whether they are wind farms, tourism resorts or other infrastructure.

“There couldn’t be a worse time to stop new jobs in Queensland yet activists are being given the green light to delay and stop any Queensland jobs being created at their political whim.

“The Government has a responsibility, and the mandate, to make decisions in the best interests of all Queenslanders to fact track the economy post-COVID-19.”

www.qrc.org.au

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ON THURSDAY, July 16, the House of Representatives Committee on Tax and Revenue will be holding its third public hearing for the inquiry into the tax treatment of employee share schemes.

Chair of the committee, Jason Falinski MP, said, "In previous public hearings, the committee heard primarily from government, legal and tax experts about the policy and related rules.

"We are looking forward to hearing from business with first-hand experience of employee share schemes and how the rules work in practice."

Further information about the inquiry is available on the committee’s website.

Public hearing details

Date: Thursday, 16 July 2020
Time: 9am to 11.15am
Location: Committee Room 1R3, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said thousands of COVID-impacted small businesses will be relieved by the Australian Banking Association’s (ABA) loan deferral extension announced today.

The ABA said banks would extend deferred loans for small businesses that are still struggling for an extra four months, potentially helping as many as 800,000 borrowers with deferred loans worth an estimated $260 billion.

The initiative has been agreed to by APRA and ASIC, which have made a collective effort to support those facing financial hardship as a result of the pandemic.

“Small business owners who have been worried about how they will repay their loans come September, will be breathing a huge sigh of relief today,” Ms Carnell said.

“I would encourage small businesses who are experiencing financial difficulties, to call their banks now to make the necessary arrangements.

“With hundreds of small businesses now facing another devastating six weeks of lockdown in parts of Victoria, it’s clear that this is not over and the path to recovery will be prolonged.

“Small businesses are going to need further support, such as the loan deferral extensions announced today," Ms Carnell said.

“As we navigate this unprecedented crisis, it’s encouraging to see our banks are taking this proactive and flexible approach.

“We want to see as many small businesses survive this difficult time as possible. The ABA announcement today is an important piece of that puzzle.”

www.asbfeo.gov.au

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FOLLOWING a six-month investigation, the Tax Practitioners Board (TPB) terminated the registration of Victoria-based The Associates Vic Pty Ltd, trading as Brown Baldwin and Associates (BBA), and imposed the maximum five-year ban.

During the investigation the TPB found BBA:

• maintained two sets of financial accounts, one set for bank purposes and another for taxation purposes. This had led to misleading information being given to the Commissioner of Taxation and credit/finance companies;
• failed to meet its outstanding taxation obligations on several occasions;
•  did not supervise its staff sufficiently to ensure that they were acting competently;
• assisted some of its clients to set up companies for the purpose of avoiding payment of debts and tax.

Additionally, the TPB found that BBA’s directors, Andrew Locantro, Biren Shah and Rajinder Narula were responsible for the misconduct of BBA and had provided misleading information to the TPB.

Speaking about the case, Chair of the TPB, Ian Klug said, "Brown Baldwin and Associates have consistently and flagrantly ignored the standards required to be a tax practitioner.

"As a result of our investigation we concluded that the public could have no confidence that either the company or its directors will perform the functions of a registered tax agent either competently or with integrity," Mr Klug said.

"Where tax practitioners deliberately choose to jeopardise the high levels of trust that the community, and the law, expects of the industry, we will act with the harshest possible penalties."

The public are encouraged to make a complaint to the TPB if they feel a registered tax practitioner is not providing services to an appropriate standard. Complaints can be made at tpb.gov.au/complaints

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, LinkedIn.

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