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CBA’s response to ASBFEO Report is much better than ABA’s feeble effort

THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) is disappointed with the Australian Bankers Association’s (ABA) response to the inquiry into small business loans.

ASBFEO Kate Carnell said the ABA’s decision not to accept the ASBFEO's definition of a small business loan as any loan under $5million is disappointing.

The ABA released its response to the ASBFEO Inquiry into Small Business Loans on Friday.

Ms Carnell said: “The ABA's very restrictive definition would mean that any business with more than 20 employees would not be deemed a small business under the banking code of practice.

“Equally restrictive and unworkable is their approach to their $3million loan limit. The ABA is saying that any business that has aggregate loans above $3million, including loans with ALL financial institutions and including ALL associated entities, will not be treated as a small business.

“This would mean that all loans taken out by directors of the business and their partners would be aggregated to determine if a loan taken out by the small business would be able to access the removal of non-financial default clauses and the other recommendations of the ASBFEO Report.”

Ms Carnell said this would exclude a very large number of small businesses and make a nonsense of the ABA’s claim that its response will cover 95 percent of business customers.

“I will be asking the ABA how they came up with this figure,” she said.

“The ABA talks about ‘covenant light’ loan contracts with small businesses - ASBFEO recommended that ALL non-financial default clauses should go except for situations where the small business breaks the law or goes into liquidation.”

Ms Carnell said the Commonwealth Bank’s undertaking last week was a better response than the ABA’s feeble effort.

“We think the ABA should go and talk with the Commonwealth Bank to consider its approach and go back to the drawing board.”

Ms Carnell noted the range of undertakings given by the ABA, including working with ASIC to implement a new Code of Banking Practice in line with the Khoury Report.

“We welcome the ABA’s undertaking that it will work on a new Code of Banking Practice this year with the aim of publishing it by the end of this year. We will closely monitor its progress,” she said.

www.asbfeo.gov.au

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ARA pushes for immediate implementation of low-value GST

THE Australian Retailers Association (ARA) opposes any delay in implementing GST to low-value imports and strongly supports the Government in closing the Low Value Threshold (LVT) loophole for the purchase of offshore tangible goods under $1000.

Executive Director of the ARA, Russell Zimmerman said any delay to low-value GST legislation will result in a number of job losses throughout the industry.

“The retail industry is already operating in a tough environment and any delay to this much-needed legislation will significantly affect employers and employees working in this sector,” Mr Zimmerman said.

“Levelling this unfair playing field for retailers is an area that both the industry and unions strongly agree on, and collectively support.”

The ARA firmly believes that the proposed GST collecting system is the best model at this point and should not be postponed.

“This legislation should be implemented as soon as possible, as we already know that overseas retailers have the capability of charging similar taxes online in Australia,” Mr Zimmerman said.

“These big global players already collect GST for digital products, therefore we want to see these retailers register and collect GST as of July 1 this year."

The ARA called on the Senate Crossbench to pass this GST at the Senate Economics Legislation hearings last Friday 21 April, and pushed for overseas retailers to immediately start collecting this tax from low-value imports.

“It is unreasonable for global retailers like eBay, who currently don’t pay any tax in Australia, not to register and collect the GST,” Mr Zimmerman said.

The ARA have been working with the Federal and State Governments to reduce the low-value threshold and provide a level playing field for Australian retailers.

“This legislation for low-value imports was first introduced in 2011 by then Assistant Treasurer, Bill Shorten, and has been supported by both parties,” Mr Zimmerman said.

“Therefore, there should not be any issue in adhering to the agreed implementation date of 1 July 2017.”

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 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Premium coal country open for bids

IN ANOTHER positive sign for the coal sector, the Queensland Government today released 270sqkm of land in the Bowen Basin for exploration, according to the Queensland Resources Council (QRC).

QRC Chief Executive Ian Macfarlane said the announcement was a compelling case for investment into the sector with some of the best quality coal in the world already being exported from the area.

“This is a significant land release with four blocks in the coal-rich Bowen Basin opened up for bids from explorers and it’s the first land release in four years.” Mr Macfarlane said.

“I congratulate the government on this proactive step to encourage more exploration which will not only benefit the coal sector but is good news for local communities and local businesses.

“It has been 15 months since the government appointed its first Resources Investment Commissioner focused on identifying and driving economic opportunities for the sector and local and overseas investors will be interested in these blocks.”

The land will be released nearby existing mines in Middlemount, Cook and Blackwater which are serviced by the Goonyella and Blackwater rail networks.

Queensland’s Exploration Council Chairman Geoff Dickie said certainty is starting to return to exploration.

“It comes at a time when there is increasing confidence in the exploration sector, and opens up some particularly prospective areas,” said Mr Dickie.

www.qrc.org.au

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Celia Murray explains IP licensing opportunities to AIEA

LICENSING opportunities for progressive Australian businesses is the topic at the next Australasian Interim Executives Association meeting in Brisbane.

Intellectual property (IP) and licensing specialist and Trademarks Attorney Celia Murray will present on 'Fast Innovation Growth Strategies for the Interim or New CEO' on Tuesday, May 2, at 10am at the new AIM Brisbane Member Lounge at Level 16, 40 Creek Street Brisbane.

At the ‘coffee and cake’ session, Ms Murray will explain what IP licensing is all about on a global scale and why Australian CEOs are slow to adopt this global strategy.

“The event is free to members and their guests and just $20 for non-members,” AIEA CEO Mal Walker said. “If you haven't met Celia before, this is an excellent opportunity to do so.”
“We are delighted that the Australian Institute of Management (AIM) is our principal sponsor and will be hosting our networking events on the first Tuesday of each month.”

Register now.

www.aiea.org.au

 

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Do you know an inspirational Melburnian?

NOMINATIONS are now open for the City of Melbourne’s prestigious Melbourne Awards, which recognise community groups and corporations who have made a positive and valuable contribution to the world’s most liveable city.

Lord Mayor Robert Doyle said the awards, now in their 15th year, highlight the achievements and service of many dedicated and inspirational Melburnians.

“The Melbourne Awards are our city’s highest accolade,” the Lord Mayor said.

“They celebrate the inspirational achievements of those who devote their time, energy and passion to make Melbourne the great city that it is; the world’s most liveable city.

“If you know a worthy recipient, please nominate them today: I know we have no shortage of contenders.”

The Lord Mayor will bestow the title of Melburnian of the Year on one outstanding individual.

“You only have to look at the calibre of the past winners to appreciate the magnitude of this award. Neale Daniher AM is the current Melburnian of the Year: his courage and drive galvanised an entire community to join him in the fight against Motor Neurone Disease.

“Other recent winners include Bryan Lipmann AM, the founder of Wintringham Specialist Aged Care, Major Brendan Nottle of the Salvation Army and music pioneer Michael Gudinksi AM.”

In addition to the Melburnian of the Year, the awards will recognise four community organisations and four corporations for their outstanding contribution to the community, environmental sustainability, multiculturalism and strengthening Melbourne’s profile.

An independent judging panel of industry leaders and Melbourne personalities will decide this year’s Melbourne Award recipients. Winners will be announced at a gala ceremony at Melbourne Town Hall on Saturday 18 November.

Nominations for the 2017 Melbourne are open until Monday 5 June.

For information or to nominate, please visit www.melbourne.vic.gov.au/melbourneawards or call 9658 9658.

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Nominations open for innovation awards

MINISTER for Defence Industry, Christopher Pyne MP, has welcomed awards to recognise and reward Australian companies and individuals at the forefront of naval and commercial maritime innovation.

Nominations are open for the Maritime Australia Industry Innovation Awards, which will be awarded at the 2017 Pacific International Maritime Exposition in October.

“There are so many small-to-medium enterprises that have developed world-leading products that have not only met Australia’s defence needs but achieved success internationally,” Minister Pyne said.

“These awards are about celebrating, recognising and rewarding the skills and expertise that exists within Australia.

“I strongly encourage companies and individuals to put their nominations forward.”

Innovation is at the forefront of the Government’s principal defence industry and innovation initiatives, a key driver to generate new defence capability.

The Next Generation Technologies Fund will invest around $730 million over the decade in technologies that have the potential to deliver game-changing capabilities for the ‘future force after next’.

The Defence Innovation Hub is investing around $640 million over the decade into maturing and developing technologies that have moved from the early science stages into the engineering and development stages.

“Innovation in defence capability is fundamentally important to maintaining a warfighting advantage and capability edge,” Mr Pyne said.

"The front door for doing business with Defence, the Centre for Defence Industry Capability, is available to provide practical advice and assistance needed to working with Defence."

The awards have been developed by the national not-for-profit foundation Industry Defence and Security Australia Limited.

o enquire about the awards and for more information, visit http://www.pacific2017.com.au/innovation-awards/index.asp or contact Gregor Ferguson at This email address is being protected from spambots. You need JavaScript enabled to view it. or 0414 803 717.

For more information about the Centre for Defence Industry Capability visit business.gov.au/cdic

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Climate Change Review discussion paper released

THE Federal Government has released a discussion paper for public consultation as part of the 2017 review of climate change policies.

The discussion paper follows the Government’s commitment to review its climate change policies when it set Australia’s target to reduce emissions by 26 to 28 per cent below 2005 levels by 2030.

The discussion paper can be accessed via: www.environment.gov.au/climate-change/review-climate-change-policies

The Government invites submissions on the discussion paper by 5 May 2017.

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Government giveth, government taketh away - IPA

SMALL businesses around Australia need to make the most of the $20,000 instant asset write-off while it’s still there, according to the Institute of Public Accountants (IPA).

“The IPA had long advocated for the write-off initiative but unless the time limit is extended in the upcoming Federal Budget, the door will close on 30 June 2017 and the limit will revert back to $1,000,” said IPA chief executive officer, Andrew Conway.

“The increase in the accelerated depreciation write off threshold to $20,000 has been a great assistance to small business cash flow.

“This initiative is bringing forward the tax deduction that would have been deductible over a number of years.

“Entities with turnover up to $10 million can now also avail themselves of this initiative if the amended Enterprise Tax Plan is passed by Parliament when it next sits.

“If this initiative reverts back to $1,000, there will be negative impact on the broader economy as the incentive for small businesses to reinvest in their future will be taken away; restricting potential growth, employment and prosperity.

“We are urging the Government to keep this forward thinking initiative alive come Budget night,” said Mr Conway.

publicaccountants.org.au

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Public accountants: crusaders fighting corruption

THE Institute of Public Accountants (IPA) has welcomed a new global study conducted by the International Federation of Accountants (IFAC) which aims to reduce corruption within economies globally.

“Corruption is an economic cancer and this global report support our long-standing perspective that accountants can and do play a key role in combatting the disease,” said IPA chief executive officer, Andrew Conway.

“The report also highlights the significant importance of good governance across all organisations.  The accounting profession’s skills ensures that accountants continue to play a pivotal role in the fight against corruption but we acknowledge it’s not a solitaire battle to be won.

“The IPA Group has continued active participation in consultations to further embed Anti-Money Laundering measures in Australia and our regional contributions through our involvement in and leadership of the development initiatives within the Asia Pacific through the Confederation of Asian and Pacific Accountants (CAPA) Professional Accountancy Organisation Development Committee.

“Collaboration across all sectors of our economy to create a culture of highest standard governance is critical to success,” said Mr Conway.

Fayez Choudhury, IFAC Chief Executive Officer, said, “The accountancy profession is a crucial part of strong national governance architectures that confront corruption, in partnership with good government and strong businesses. And vitally, the study shows professional ethics, education, and oversight—at the core of the global accountancy profession—are key to the profession’s positive impact in tackling corruption.”

Among the key findings, the study reveals that a higher percentage of accountants in the workforce strongly correlates to better outcomes in Transparency International’s Corruption Perceptions Index.

Highlighting the importance of strong cross-sectoral governance structures, the study found the profession’s impact was significantly greater in G-20 countries and member nations of the Financial Action Task Force.

“When public accountants such as our members are present in an economy, the positive correlation rises even further. Our members adopt the global profession’s ethical, educational, and investigation and discipline requirements,” said Mr Conway.

More information on the IFAC report can be found at: The Accountancy Profession—Playing a Positive Role in Tackling Corruption

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 35,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.  

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

publicaccountants.org.au

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BMA investment to create hundreds of jobs

TODAY'S announcement by BHP Mitsubishi Alliance (BMA) to invest over $200 million into the Bowen Basin will create hundreds of jobs and shows the ongoing strength of the state’s coal industry.

BMA announced it would invest US$204 million in the Caval Ridge Southern Circuit (CRSC) capital growth project. The CRSC is an 11 kilometre overland conveyor system that will transport coal from the company’s Peak Downs Mine to the Coal Handling Preparation Plant (CHPP) at the nearby Caval Ridge Mine.

Queensland Resources Council Chief Executive Ian Macfarlane said it was great news for the local community and the broader Queensland coal industry, which had been struggling through a downturn over the past few years.

“These investments are driven by companies willing to invest because they see the fundamental drivers of global demand for high-quality Queensland coal remain strong,” Mr Macfarlane said.

“We know demand remains strong as there is no viable substitute for coking coal in the production of blast-furnace steel – no ‘Uber’ process waiting in the wings.

“This announcement today is good news for the coal sector and the benefits will flow into local communities and local businesses.”

The project will create up to 400 new construction jobs and around 200 ongoing jobs and is scheduled to start this year.

QRC’s current data shows that in 2015-16, the state’s coal industry’s total contribution of $32.7 billion, supported more than 180,000 jobs. The coal industry spent $11.3 billion in Queensland on more than 10,700 local businesses and almost 500 community organisations.

www.qrc.org.au

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Jumpstart the electricity conversation

THE House of Representatives Standing Committee on the Environment and Energy is powering ahead with its inquiry into modernising Australia’s electricity grid.

Written submissions to the inquiry, addressing one or more of the terms of reference, are due at the end of next week on Friday, 28 April 2017.

The Committee is eager to hear from interested stakeholders, so submitters are reminded to lodge their submissions by the due date via the inquiry website. To assist stakeholders in formulating their submissions, the Committee has prepared a brief discussion paper expanding on the terms of reference.

In addition to written submissions, the Committee is also accepting answers to an online questionnaire, which asks households and businesses to share information about how they currently interact with the electricity grid, and about their expectations of the grid into the future.

The Chair of the Committee, Mr Andrew Broad MP, said the Committee is keen to learn about the challenges the community identifies with the current electricity grid.

“We also need to identify what opportunities exist to modernise this important and essential service’s infrastructure,” Mr Broad said.

The Deputy Chair of the Committee, Mr Pat Conroy MP, said written submissions and questionnaire answers are vital in guiding the Committee.

“This is a bipartisan inquiry, and we’ll focus on the issues that are important to the community and to stakeholders,” Mr Conroy said.

Further information about the inquiry—including the terms of reference, the discussion paper, and the online questionnaire—is available on the inquiry webpage. Information about how to make a submission to an inquiry can be obtained from the Parliament of Australia webpage.

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

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