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Big Four banks agree to new small business contracts

CHANGES in bank contracts with small business people would boost the economy and be a feather in the ombudsman’s small business cap, according to the Council of Small Business Australia (COSBOA).

COSBOA today congratulated the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and her staff, as well as the Australian Bankers Association on a ground-breaking agreement for processing contracts and inclusions for small business people.

Peter Strong, CEO, COSBOA commented on the impact of these changes for small business people ahead of the Vodafone National Small Business Summit which takes place this week, 23-25 August in Melbourne.

“It’s taken longer than it should have done, but the big four banks have finally agreed to eliminate unfair terms from their contracts. Small business people are now safe from banks unilaterally changing loan contracts. Good on the banks," Mr Strong said.

“Unfair contracts legislation came into effect in November last year and banks were very slow to comply. But thanks to the work of Ombudsman Kate Carnell and her team, there are now important protections for small business customers,” said Mr Strong.

COSBOA notes that banks can no longer call in a default for an unspecified negative change in circumstances of a small business customer. In addition, banks are now able to vary contracts only in specific circumstances.

“These are basic rights that individual customers have had for a long time. It was unfair that small business people were at the mercy of decision from banks that were able to do whatever they wanted, whenever they wanted. The changes are a positive step for business and for the health of our economy,” added Mr Strong.

“The other big change is the new maximum threshold for the changes to take effect which is now $3 million, well up from the $300,000 set for other contracts. This is much more reflective of the real situation in the small business finance space, we do not want to appear greedy, we’d like it to be $5 million, but $3 million is a great leap forward.

“It is important that we acknowledge the work of the Australian Bankers Association who have supported changes in contract inclusions,” concluded Mr Strong.

Finally, it is worth noting the presence of an Ombudsman for small business people, along with the State Small Business Commissioners, has not had a negative impact on big business but indeed has had a positive impact on small business people and the economy. 

It is interesting that all the staff of the Ombudsman and commissioners understand small business as people and its wider importance to the economy. Not many agencies have that situation as there always seems to be some ideologue, or some 1990s laissez-faire economist in other government agencies who hold back progress and good regulation.

Kate Carnell, Australian Small Business and Family Enterprise Ombudsman; Judy O’Connell, Victorian Small Business Commissioner and Anna Bligh, CEO of Australian Banking Association will speak at the Vodafone National Small Business Summit, 23-25 August 2017 at the Events Centre Collins Square, Melbourne. 

Registrations are open for the Vodafone National Small Business Summit. For more information please visit: www.cosboansbs.com.au  

#NSBS17

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Payment times improve but more needs to be done

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed new data which shows that late payment performance is beginning to improve.

The latest Dun & Bradstreet report shows that late payments fell during the second quarter of 2017 by 4.6 percent, while prompt payments rose sharply.

On average, 63.8 percent of Australian businesses paid their bills on time.

However, just 12 per cent of ASX-listed companies pay on time compared with almost 34 percent of non-ASX-listed companies.

“This is very disappointing as public companies should be leading by example,” Ms Carnell said.

“It’s pleasing that some progress has been made since the ASBFEO inquiry into payment times and practices reported in March but more needs to be done.

“One of the biggest issues facing small business is delayed payments by big business and governments.

“Cash flow is king to small business; late payments can be the difference between success and insolvency.

“Overseas jurisdictions have demonstrated that faster payments through supply chains will free up cash flow and stimulate investment, jobs and growth.”

Ms Carnell said the Dun & Bradstreet report also reveals that Western Australia has the slowest payment times and the worst-performing sectors are wholesaling and manufacturing.

She said ASBFEO is developing a National Payment Transparency Register to publish businesses payment times and practices rated against a benchmark for good and bad performers.

The Business Council of Australia has established the Australian Supplier Payment Code – a voluntary, industry-led initiative.

For government payments, Ms Carnell said she would continue to push for 15-day payment terms.

“I’m encouraged the NSW Government has undertaken to investigate this,” she said.

View the Dun & Bradstreet report online.

 

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Court of Appeal dismisses activist’s claim

QUEENSLAND Resources Council (QRC) Chief Executive Ian Macfarlane said the opening of the vast rich coal deposits in the Galilee Basin edged forward today with another dismissal of an activist’s challenge in the Court of Appeal.

The proceedings were brought against Adani’s Carmichael coal mine project and the State Government from a member of the Wangan and Jagalingou people over the granting of Adani’s mining lease.

"It’s no surprise the court action was dismissed as it is just another in the long line of vexatious legal suits that hold back regional economies. Ten local government areas across central and northern Queensland are desperate for the economic investment this project will generate," Mr Macfarlane said.

"For every year, the Adani Carmichael coal mine project is delayed, Queensland misses out on $185 million in royalties, which would pay for 2,900 extra nurses or 3,350 extra police officers or 3,400 extra teachers. Exporting resources helps to fund essential services and they are a significant driver of growth, in 2015/16 the industry contributed $55.7 billion to the state’s economy.

"The appeal by Adrian Burragubba is merely a tactic of the anti-coal brigade and is straight out of the activists’ playbook. It’s all about disrupting and delaying new projects in the hope that the investor will give up and walk away and in so doing, denying regional Queensland thousands of desperately needed jobs.

"With coal prices strong, we need to get this project out of the courts and into construction."

www,qrc.org.au

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Is Telstra’s regional monopoly holding back small business growth?

ACCORDING to telecommunications and small business experts, ahead of the Vodafone National Small Business Summit in Melbourne this week, Telstra’s regional monopoly is holding small business growth back.

On the agenda at the Summit will be how domestic mobile roaming is Australia’s best opportunity to drive mobile coverage expansion in regional areas.

Currently, Telstra holds a taxpayer-funded mobile monopoly in vast areas of regional Australia. The Summit hosted by the Council of Small Business Australia (COSBOA) will support the right for regional businesses to have the same coverage enjoyed by their metropolitan counterparts.

The introduction of domestic mobile roaming would allow all Australians to use their mobile wherever coverage exists, regardless of their provider. This removes the need for multiple carriers to duplicate infrastructure in regional areas, so that carriers, governments and communities could co-invest in one expanded, shared set of infrastructure which delivers new coverage. 

Dan Lloyd, Chief Strategy Officer and Corporate Affairs Director, Vodafone will champion the call at the Summit to improve coverage, competition and choice in regional areas.

“Domestic roaming would be a game changer for small businesses in regional Australia, unlocking enormous opportunities for innovation, productivity and growth through improved mobile coverage and competition.

“Telstra’s regional mobile network is the network taxpayers built, with around $2 billion in government funding and subsidies given to Telstra since 2006. All small businesses in regional Australia should be able to benefit from taxpayers’ investment, instead of being stung with Telstra’s price premium,” said Mr Lloyd.

Domestic mobile roaming has proved successful in similar countries around the world.

“Mobile roaming has been effectively regulated in virtually every other western country with similar challenges of large land area and low population density – the USA, Canada, New Zealand, France, and Spain. It should be a no-brainer for Australia,” concluded Mr Lloyd.

Small business advocate, Peter Strong, CEO of Council of Small Business Australia (COSBOA) supports Mr Lloyd’s call for increased competition through domestic mobile roaming. 

“Small businesses across the country would benefit from increased competition in the rural telecommunications. Sector competition encourages product improvement and lower costs, both which rural small business people and consumers alike would welcome,” said Mr Strong.

Mr Lloyd will join senior politicians and industry leaders at Australia’s premier small business policy event to discuss key issues facing small business in Australia, including banking payments, cyber security, the digital economy, regulation red-tapeand more.

Key speakers include:

  • Bill Shorten MP, Leader of the Opposition
  • Josh Frydenberg MP, Federal Minister for the Environment and Energy
  • Michael McCormack MP, Federal Minister for Small Business
  • Kate Carnell, Australian Small Business and Family Enterprise Ombudsman
  • Anna Bligh, CEO, Australian Bankers Association
  • Dan Lloyd, Chief Strategy Officer and Corporate Affairs Director, Vodafone
  • Richard Flanagan, Head of Business Marketing, Google Australia and New Zealand
  • Jennifer Westacott, Chief Executive, Business Council Australia 

Vodafone is partnering with COSBOA to host the Vodafone National Small Business Summit, Australia’s premier policy event for small business representatives, government and industry leaders which will take place in Melbourne, 23-25 August 2017.

Registrations are open for the Vodafone National Small Business Summit. For more information please visit: www.cosboansbs.com.au

#NSBS17

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Sydney striding towards a sustainable future

SYDNEY'S population is now north of 5 million people and growth is projected to continue. Its expanding population will test the capacity of key infrastructure including transportation, water, energy and waste treatment facilities. Innovative methods will be needed to meet greater demand.

The Committee on Infrastructure, Transport and Cities is investigating the Australian Government’s role in addressing these issues. It will conduct site inspections in Sydney next week, to examine examples of environmentally and socially sustainable urban design, and to talk to thought leaders at a public hearing on Tuesday.

Committee Chair, John Alexander OAM MP, said Sydney is already making strides towards a more environmentally sustainable urban form, capable of accommodating an increasing population.

“A lot of people in Sydney are aware of these issues and are identifying innovative solutions,” Mr Alexander said.

“The city is a global leader with pioneering urban renewal projects, like Barangaroo, which will be the first ‘climate positive’ precinct in the world when it is completed.

“Our inquiry will look at development and other activities occurring in Sydney with a view to identifying a role for the Commonwealth Government in facilitating long term city planning to address these issues.”

‘Smart cities’ will be on the agenda at the hearing. The Downer Group describes smart cities as efficient, liveable, and economically, socially and environmentally sustainable cities, which “take static infrastructure and services, and make them smart, to empower people and improve their standard of living”.

“While the cost of building smart infrastructure can be more expensive to build, there is huge value to be gained through operational efficiency and improved customer outcomes”, the Downer Group suggested.

 

Public hearing details: 9.00 am – 3.00 pm, Tuesday 22 August, Jubilee Room, NSW Parliament

9.00 am: Green Building Council of Australia
9.40 am: Consult Australia
10.40 am: Sue Holliday
11.20 am: Total Environment Centre
12.00 pm: Lunch
12:50 pm: Downer Group
1.30 pm: Committee for Sydney
2.10 pm: IoT Alliance Australia
3.00 pm: Close

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

Further information on the inquiry, including the full terms of reference, is available on the Committee website.

 Interested members of the public may wish to track the inquiry via the Committee’s website.

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Chevron tax case outcome welcomed

THE FEDERAL Government has welcomed the withdrawal of Chevron’s appeal to the High Court over the Australian Taxation Office’s assessment of $340 million in tax and penalties for interest payments made to related offshore parties.

Chevron sought to challenge Australia’s transfer pricing rules and the appropriate method for establishing an arms-length interest rate for a related party loan.

"The case also raised constitutional issues regarding transfer pricing provisions," Financial Services Minister Kelly O'Dwyer said. "The Full Federal Court upheld the ATO’s position in April this year. The withdrawal of the appeal means that the decision is now final.

"While the Commissioner cannot brief me on any individual's or entity's tax affairs, the resolution of this matter is a significant win for the Australian community.

"The ATO’s initial estimates are that the Chevron decision will bring in more than $10 billion dollars of additional revenue over the next ten years in relation to transfer pricing of related party financing alone.

"Not only does this result put more revenue back to the Australian people, it also strengthens the ATO’s position in pursuing other arrangements where multinationals seek to dodge Australia’s transfer pricing rules.  

"The resolution of this matter clearly demonstrates the Government is taking strong action to ensure multinational companies pay their fair share of tax on the profits they earn in Australia.

"We have already provided an additional $679 million in funding to the ATO through the Tax Avoidance Taskforce to strengthen the ATO’s capabilities and ensure these multinational companies operating in Australia are held to account. The Taskforce is estimated to generate $3.7 billion from 2016-17 to 2019-20.

"We are also taking action by further strengthening Australia’s tax laws. The Multinational Anti-Avoidance Legislation has brought $6.5 billion per annum into Australia’s tax base through the restructuring of corporate groups.

"More recently the Diverted Profits Tax will also put more pressure on these multinational companies to justify their international tax arrangements."

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Committee hits the road for water use efficiency hearings

THE House Agriculture and Water Resources Committee will travel this week to collect evidence for its inquiry into water use efficiency in Australian agriculture.

Committee chair, Rick Wilson MP, discussed the hearing program for the week:

“As the committee approaches the end of the evidence gathering phase of the inquiry, we will be travelling widely to hear from some key witnesses. Importantly, we will be hearing about some irrigation areas that lie outside the Murray Darling basin, specifically the Harvey Water area in Western Australia, and several areas in southern Victoria managed by Southern Rural Water.

Additionally, the committee looks forward to discussing water use efficiency with key academics from South Australia that have a deep interest in water management.

We will finish up in Melbourne with discussions on the role of technology, science and engineering in improving water use efficiency, and gain some input from organisations from north-east Victoria.”

 

Public hearing details:

Tuesday, 22 August, 11.15 am to 1.15pm, Harvey Town Hall, Harvey, Western Australia.

11.15am – 1.15pm: WA Government
12.00pm – 1.15pm: Harvey Water

Wednesday, 23 August, 1.00 pm to 3.30 pm, ‘Old Chamber’, Parliament of South Australia

1.00pm – 1.45pm: Professor Lin Crase
1.45pm – 2.30pm: Associate Professor David Paton AM
2.30pm – 3.30pm: Dr David Adamson, Dr Adam Loch, Assoc. Prof Sarah Wheeler and Prof Jeff Conner

Thursday, 24 August, 9.15 am to 3.45 pm, Committee Room G7, Parliament of Victoria

9.15am – 3.45pm: Witnesses to include water resource managers and a drip irrigation system manufacturer

A full program for each day is available on the inquiry website. The hearing will be broadcast live at aph.gov.au/live.

Interested members of the public may wish to track the committee via the website. 

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Committee to sync trade and the digital economy

THE Trade and Investment Growth Committee has announced an inquiry into the trade system and the digital economy.

The World Economic Forum has identified that the digital economy has a central role in future trade policy. In Australia, like the rest of the world, the digital economy is challenging traditional business models and this inquiry will look at whether Australia’s trade system is meeting these contemporary needs.

Committee Chair Ken O’Dowd MP said “trade drives economic growth and the digital economy represents an important part of how business operates now and into the future. This inquiry will look at ways to ensure that Australia’s trade system can keep pace with our digital innovators.” He added, “we also need to ensure that our business sector is cyber-resilient so Australia can be leaders in this important area.”

The terms of reference for the inquiry are:

  • the responsiveness of Australia’s trade architecture and regulatory system to the contemporary need of the digital economy and disruptive technology; and
  • measures to improve the cyber-resilience of Australia’s trade-focussed business sector.

The Committee welcomes submissions from any individuals or businesses interested in trade and the digital economy. Submissions can be made by the Committee’s website before 12 October 2017. The Committee anticipates holding public hearings on the inquiry and advice will be provided on the website when these are scheduled.

Interested members of the public may wish to track the committee via www.aph.gov.au/jsctig. 

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ARA at the forefront of tackling the 'black economy'

THE Australian Retailers Association (ARA) have issued a submission to the Department of the Treasury’s Black Economy Taskforce regarding the retail industry’s leading role in fighting the black economy.

This Taskforce is focused on developing a strategy to uncover and stop the black economy in Australia by encouraging a move towards cash alternatives, improved policing and regulation. The current existence of the black economy undermines legitimate businesses in the retail sector.

The ARA’s Black Economy submission highlights the retail industry’s proactive role in tackling the black economy.

ARA Executive Director Russell Zimmerman said retailers across the country are using innovative and consumer friendly payment options to eradicate illegitimate and unfair business practices.

“We are extremely pleased to see the retail sector leading the way in tackling the black economy through innovation and proactive measures,” Mr Zimmerman said.

“The introduction of mobile payment systems, cashless payroll systems and electronic payment systems are all examples of how the retail industry has developed solutions to assist in eliminating illicit trade.”

The ARA called on the Black Economy Taskforce to embrace new technologies including mobile wallets and mobile payments to provide open access to retailers and consumers. 

“Greater participation in mobile wallets and mobile payments by merchants and service providers will lead to greater convenience for consumers while reducing under the counter transactions,” Mr Zimmerman said.

“These new payment technologies can provide a wide range of benefits which will significantly reduce black economy transactions and improve cashflow efficiencies for retailers.”

To view the ARA’s submission to the Department of the Treasury’s Black Economy Taskforce, please click here.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Xenophon to speak at Vodafone National Small Business Summit

SENATOR for South Australia, Nick Xenophon, has been confirmed to speak at Australia’s premier small business policy event – the Vodafone National Small Business Summit – in Melbourne on 23-25 August 2017.

Hosted by the Council of Small Business Australia (COSBOA), Xenophon will address delegates on Friday 25 August, sharing his insights on the integral role Government have in reducing bureaucratic obstacles fostering small business growth.

“Small business is Australia’s largest employing sector and a significant contributor to the economy, however owners across the nation are being held back by Government red tape and paper work.

“I look forward to meeting with policy makers and leaders at the Summit, and sharing how the Government can assist small business owners to grow their business, be innovative and agile, rather than having to jump through makeshift obstacles,” commented Xenophon.

Small business leader and advocate, Peter Strong, CEO of COSBOA commented on the opportunity to welcome Xenophon to Australia’s premier policy event and share his voice in shaping the future of small business across the nation.

“It is an honour to host Senator Xenophon at the Vodafone National Small Business Summit. Nick is a fervent supporter of Australian small businesses and creating an effective government and economic environment to support growth,” said Mr Strong.

Xenophon will join senior politicians and industry leaders to discuss key issues facing small business in Australia, including banking payments, cyber security, the digital economy, regulation red-tape and more at the Summit. Key speakers include:

-    The Hon. Bill Shorten MP, Leader of the Opposition
-    The Hon. Josh Frydenberg MP, Federal Minister for the Environment and Energy
-    The Hon. Michael McCormack MP, Federal Minister for Small Business
-    The Hon. Philip Dalidakis MP, Victorian Minister for Small Business
-    Kate Carnell, Australian Small Business and Family Enterprise Ombudsman
-    Anna Bligh, CEO, Australian Bankers Association
-    Dan Lloyd, Chief Strategy Officer and Corporate Affairs Director, Vodafone
-    Richard Flanagan, Head of Business Marketing, Google Australia and New Zealand
-    Jennifer Westacott, Chief Executive, Business Council Australia 

Registrations are open for the Vodafone National Small Business Summit. For more information please visit: www.cosboansbs.com.au

To celebrate the commencement of the Summit, Small Business owners are invited to attend the Small Business Start-Up Reception from 6pm-8pm on Wednesday, 23 August 2017. The event will provide an opportunity for owners to hear from Peter Strong, CEO of COSBOA and network with industry leaders and key decision makers. A panel on the evening will highlight the next generation of employers and innovators and discuss what more our education system can do to support entrepreneurship.

#NSBS17

www.cosboansbs.com.au

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Promoting tourism to the Indian Ocean territories

THE Parliament’s Northern Australia Committee will visit Christmas Island and the Cocos (Keeling) Islands from Saturday 16 September to Friday 22 September to hold public hearings as part of its Inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern Australia.

The Committee Chair, Warren Entsch MP said ecotourism is becoming increasingly popular with Australian and international visitors and the potential is there to develop existing tourism operations and create new experiences on the Indian Ocean Territories.

“Christmas Island and the Cocos (Keeling) Islands have recently been voted as having some of the best beaches in Australia, with their pristine coral reefs, and largely unspoilt national parks,” Mr Entsch said.

“Increasing tourism to the islands will also boost jobs and create a positive impact on the local economy,” he said.

The Committee will hear evidence from a range of tourism stakeholders, and hold an open microphone session where interested people can make a five minute statement about tourism issues.

 

Public Hearing Programs:
Monday, 18 September: Christmas Island Court House, 8.00 am to 4.00 pm (open microphone session from 3.00 pm to 4.00 pm).
Wednesday, 20 September: Home Island, Council Chamber, Shire Offices, 8.30 am to 11.30 am (open microphone session from 11.00 am to 11.30 am).
Thursday, 21 September: West Island, Community Resources Centre, 8.00 am to 12.30 pm (open microphone session from 12 noon to 12.30 pm).

For more information about the Committee’s inquiry, including the hearing program, submissions and terms of reference visit: www.aph.gov.au/jscna.

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