SPEAKING at the 2020 Victorian Farmers Federation Grains Conference in Moama last week, the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell urged small businesses in the grain industry to take steps to future-proof their operations.

“Small businesses have been hit hard over the past 15 years with a spate of insolvencies across larger grain buying businesses leaving millions owed to growers,” Ms Carnell said.

“These Australian grain traders’ insolvencies have cost small business growers more than $50 million since the year 2000.

“It’s important that small businesses in the grains industry do what they can to protect their businesses.

“I’d encourage these small businesses to do their due diligence on customers by making sure they pay on time, checking the business register to confirm details and doing necessary credit checks," Ms Carnell said.

“Grain growers should try to avoid being reliant on one customer to reduce their risk.

“If a customer becomes insolvent, contact the external administrator to make sure you are recorded as a creditor and attend meetings throughout the process.

“Like all small businesses, grain growers should stop supply if they haven’t been paid," Ms Carnell said.

“Insolvencies in the grain industry – particularly the impact it’s had on small businesses – is an issue that is being looked at as part of our ongoing Insolvency Practices Inquiry.”

The final Insolvency Practices Inquiry report is set to be handed down at the end of March.

www.asbfeo.gov.au

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INCREASING foreign investment in venture capital, particularly at the early and seed stages, could give industry and innovation the critical boost it needs, generating greater economic benefits to Australia including higher employment and more patents, leading fund manager, Atlas Advisors Australia, said.

Executive chairman of the top Significant Investor Visa fund manager, Atlas Advisors Australia, Guy Hedley called on the Australian Government to give priority to venture capital under the SIV program.

Mr Hedley’s comments form part of Atlas Advisors Australia’s recent submission in support of the Australian Government’s review of the Business Innovation and Investment Program.

He said while there had been significant growth in venture capital investment to $1 billion in annual commitments, investment in early stage venture capital and seed funding declined by as much as 46 percent in the past four years.

“It is estimated that investment in early stages has been about $75 million spread across 138 deals in fiscal 2019. This is down significantly from $180 million across 270 deals in 2016,” Mr Hedley said.

“This could be significantly increased by boosting the asset allocation towards early stage investments under the SIV’s complying investment framework,” he said.

Australia reported very low venture capital per capita of between $15 and $30, amounting to less than half the OECD average, four times lower than Sweden at $122, United Kingdom at $114, France and Germany at $60.

According to AusIndustry data, 40 percent of the 84 registered venture capital funds didn’t make a single investment in fiscal 2019 and only 14 percent made 10 or more investments.

It was important to consider that the economic benefits, including employment and patents, were driven much higher by allocating to venture capital than to secondary public market equities, Mr Hedley said. 

The venture capital or private equity fund component of the complying investment framework should be skewed more to Early Stage Venture Capital Limited Partnership (ESVCLP) funds and less towards lower risk Venture Capital Limited Partnership (VCLP) investments.

“Even with a strong proportion of new SIV approvals, we are unable to meet the growing demand for seed and early stage venture capital,” Mr Hedley said.

“Where an investor elects to allocate 50 percent of the investment framework into venture capital and growth private equity funds, there should be a reduced visa period of three years or a prioritization of the application for processing.”

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THE Queensland Government’s North Queensland Regional Plan has reinforced a strong future for the resources sector.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said the Plan, released by State Development, Manufacturing, Infrastructure and Planning Minister Cameron Dick last week, specifically focussed on the future opportunities for the mining industry.

Mr Macfarlane said it was important that policies were put in place to back in the potential outlined in the plan, in particular a commitment to clear assessment processes and timelines.

“This report points to the great prospectivity of North Queensland in our powerhouse commodities of coal and natural gas, as well as other valuable commodities such as gold and metallic ore,” Mr Macfarlane said.

“QRC believes it is essential that the State Government has a plan to develop these commodities, and capitalise on the rich prospects in critical minerals that drive our modern economies.

“To make the most of these opportunities Queensland must have a clear framework and timelines for project assessments.

“If we want to attract the investment in new projects that create new regional jobs, we must ensure that global investors have faith in Queensland’s laws and regulations to allow ongoing resources development alongside environmental and regional benefits.”

Mr Macfarlane said the QRC has worked with the government to promote new discoveries and protect existing jobs within the industry and for those Queenslanders, local businesses and communities indirectly benefiting from a strong resources sector.

“I want to thank Minister Dick and his department for their consultative approach on the development of the landmark North Queensland Regional Plan.  The Plan balances the current challenges of the industry and the future opportunities for it and the people of North Queensland,” he said.

Mr Macfarlane said QRC welcomed the Plan’s focus on three areas of opportunity for the resources sector. These are:

1. supporting the identification and extraction of precious metals and rare earth elements. There is expected to be an increase in demand, due to their increasing use in emerging technologies (such as electric cars, renewable energy products and low-emission power sources);
2. expanding the region’s support capacity (supply chain, logistics and other allied services) for the North West mineral province, Bowen Basin and Northern Galilee Basin;
3. investigating and promoting new technologies to improve the sustainability and capabilities of mining and resource extraction. Technological advancement will also help improve the viability of extracting existing mineral deposits in the region. 

Mr Macfarlane said these opportunities, along with regulatory stability, streamlined assessment processes and land access, would underpin the sector’s continued growth and will deliver more jobs and more investment for North Queensland.

“The Queensland resources sector is essential to the wellbeing of the Queensland economy.  We want to see all sides of politics commit to polices that support new investment and new jobs,” Mr Macfarlane said.

“QRC commits to working with all sides of the Queensland Parliament on policies that maximise regional and state-wide returns from investment in the North.”

www.qrc.org.au

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THE Parliamentary Standing Committee on Public Works held a public hearing as part of its scrutiny of the proposal from the Australian Taxation Office (ATO) to conduct integrated fit-out works for new leased premises at 152 Wharf Street, Brisbane, QLD.

The proposed works are due for completion in August 2022. The total estimated cost of the project is $49.59 million, excluding GST.

The Committee conducted public and in-camera hearings for the inquiry at Parliament House, Canberra on 26 February 2020.

Interested members of the public are encouraged to contact the Committee Secretariat.

The hearing was broadcast live at aph.gov.au/live.

Note: The Parliamentary Standing Committee on Public Works is not involved in the tendering process, awarding of contracts or details of the proposed works. Inquiries on these matters should be addressed to the relevant Commonwealth entities.

Inquiries

Committee Secretariat
02 6277 4636
This email address is being protected from spambots. You need JavaScript enabled to view it.

For more information about this committee, visit its website.

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CPA AUSTRALIA and Chartered Accountants Australia and New Zealand have joined 14 of the world’s largest professional accounting organisations committing to a call to action in response to climate change. The organisations represent 2.5 million accountants globally. 

Chief executive of CPA Australia, Andrew Hunter said, "Climate change presents significant economic and social challenges both now and in the future – challenges that require action from governments, businesses and people from all walks of life.”

“Accountants are uniquely placed and qualified to help businesses and organisations deal with climate change,” said Chartered Accountants Australia and New Zealand chief executive Rick Ellis. “They can quantify the risks, and their financial consequences, providing robust, reliable and transparent information for decision makers, investors and the public.” 

The statement includes actions the accounting profession can take, as well as a commitment from the chief executives of the organisations to support members in the coming months with the resources, information and training needed to meet the challenges ahead.

The transition for economies will rely on adapting economic policies and associated market mechanisms. The accounting profession is central to helping achieve both of these important objectives.

Mr Hunter also said, "The call to action is consistent with, and complements actions taken by, a broad range of regulatory agencies by way of pronouncements and guidance emphasising the economic and business imperatives of response to the multi-faceted challenges of climate change. 

“It also adds to the growing momentum towards identifying strategies for a just and economically efficient transition to net zero emissions.”

Mr Ellis said, "Accountants are already playing a key role assisting organisations to manage their impact on the planet and the impact of climate change on their organisation.

“Our call to action supports both these early adopters who are quantifying risk and accountants following in their footsteps.”

 www.accountingforsustainability.org/abn-climate-action 

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FEDERAL Minister for Women, Senator Marise Payne, and Minister for Employment, Skills, Small and Family Business, Senator Michaelia Cash, were among the participants on Friday at an event in Parramatta to improve understanding of the strengths of women from diverse background in work.

Settlement Services International (SSI) hosted the event in the lead-up to International Women’s Day. It brought together nearly 200 women from culturally and linguistically diverse (CALD) backgrounds, community leaders, and representatives from the corporate world.

Senator Payne said the economy as a whole, and women themselves, were better off with greater female participation.

“There are significant social, health and wellbeing benefits for women when they work. In the case of migrant women, it is good for their integration and their social wellbeing and that of their families,” Senator Payne said.

“Our government recognises these trends and truths. It’s why we’re supporting more women to work.”

Senator Cash said migrant women faced particular challenges when it came to economic participation and financial security.

“Australia’s success as a multicultural and inclusive nation depends on the economic participation and contribution of migrants. That’s why the Morrison Government has a strong focus on ensuring we provide the support services to facilitate English language proficiency, employment and education when providing settlement assistance to migrants and humanitarian entrants to Australia,” Senator Cash said.

“Women from diverse backgrounds are skilled, courageous and resourceful. What is often missing is the opportunity to fully participate and share that skill and knowledge. This is why the Government continues to ensure its mainstream employment services feature a range of interventions, activities and complementary programs to help assist CALD and refugee job seekers, including women.”

Zena Habib, head of people and culture at the Australian National Maritime Museum, said her organisation was working hard to improve the cultural diversity of its workforce and today’s session offered invaluable insights and tips.

“Hearing first hand some of the challenges women from diverse backgrounds face and then being able to focus on solutions with two key ministers and corporates has given me not only inspiration to change things but some tools for how,” Ms Habib said.

SSI CEO Violet Roumeliotis said IWD was about celebrating women’s achievements, raising awareness against bias, and taking action for equality.

“Gender equity is not just a women’s issue, it’s an issue for everyone,” Ms Roumeliotis said. “We know that when women do well, their families, businesses and whole communities prosper.

"Empowering Women through Employment recognised that women from culturally and linguistically diverse backgrounds were at a unique intersection of gender and culture that could limit employment opportunities and career progression.

“In order to drive change on a larger scale, we need to ensure the voices of women from CALD backgrounds are front and centre. Let’s be #EachforEqual."

About SSI

Settlement Services International is a community organisation and social business that supports newcomers and other Australians to achieve their full potential. SSI works with people who have experienced vulnerability, including refugees, people seeking asylum and culturally and linguistically diverse (CALD) communities, to build capacity and enable them to overcome inequality.

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THE Joint Standing Committee on Trade and Investment Growth has commenced a new inquiry into the 2018-19 annual reports of the Department of Foreign Affairs and Trade and Austrade.

The inquiry will focus on whether there is a need to diversify Australia’s trade markets; and Australia’s level of reliance on foreign investment.

Committee chair George Christensen MP said recent international events had highlighted vulnerabilities in Australia’s economy to external impacts, and the importance of looking at ways to mitigate these risks.

"As part of its inquiry, the committee will consider 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," Mr Christensen said. "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.

"The action that industry and government is taking to diversify trade markets and ensure Australia is not overly reliant on foreign investment will also be examined," Mr Christensen said.

Submissions from interested individuals, businesses and organisations are invited by Thursday, April 9, 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.

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) will hold a public hearing for its Review of the mandatory data retention regime.

The chair, Andrew Hastie MP, said, "This hearing will allow the committee to hear from key users of data retained under the meta data retention regime. Hearing from Home Affairs, ASIO and law enforcement on the mandatory data retention regime will allow the committee to explore the sensitive issues around the use of telecommunications data."

The mandatory data retention regime is the legislative framework which requires carriers, carriage service providers and internet service providers to retain a defined set of telecommunications data for two years, ensuring that such data remains available for law enforcement and national security investigations.

Public hearing details

Date: 28 February 2020
Time: 8.30am – 4.3 pm
Location: Committee Room 2R1, Parliament House, Canberra

A full program for the hearing can be found here.

Further information on the inquiry can be obtained from the committee’s website.