APPLICATIONS are now open for the Visions of Australia regional exhibitions touring program.

THE National Farmers’ Federation has called on the Parliament to pass the Government’s Enterprise Tax Plan in full.

Assistant Minister to the Deputy Prime Minister, Luke Hartsuyker, has welcomed the strong support of Australia’s farmers for the Government’s Enterprise Tax Plan.

Over the weekend, the ​National Farmers’ Federation issued a public warning that valuable new Asian export markets are in jeopardy if the Parliament does not pass the Enterprise Tax Plan in full.

“Australia’s farmers and agribusinesses are very efficient, producing the finest food and fibre in the world. But they are competing with one hand tied behind their backs because of Australia’s uncompetitive business tax rates,” Mr Hartsuyker said.

“Australia is a net exporter of food and fibre, with about two-thirds of total agricultural production exported. These exports make Australia wealthier, providing jobs and supporting regional communities.

“Australian agriculture has significant potential to supply the rapidly growing Asian markets on our doorstep, but the necessary increases in production and processing capability will require significant investment along the supply chain.

“With intense global competition for investment in agribusiness, it is vital that Australia moves toward creating a more competitive atmosphere for business.

“The Coalition Government is determined to deliver more competitive tax rates along the entire supply chain through our Enterprise Tax Plan. Labor’s stated intention of limiting company tax relief to small business will create roadblocks for investment at vital points in the integrated supply chain.

“Australia’s farmers have made it clear that the Government’s Enterprise Tax Plan is vital for our national economic development. Labor now has a choice – support Australia’s farmers by backing the Government’s Enterprise Tax Plan, or prove once again that Labor has no idea about Australian agriculture or regional communities.”

www.minister.agriculture.gov.au

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THE Institute of Public Accountants (IPA) has renewed its call for the return of the loss carry-back initiative introduced by the Government in 2012 but which only endured a one year life-span.

“The IPA had long advocated for the loss carry-back which gave viable businesses a boost when they needed it the most through more timely tax loss relief,” said IPA chief executive officer, Andrew Conway.

“With the repeal of the Minerals Resource Rent Tax, the loss carry-back became an instant casualty.

“Small businesses operating through companies generally have limited resources to cope with adverse trading conditions and may require short-term liquidity to meet day-to-day liabilities.

“This has always been one of the major shortcomings of the tax loss treatment rules for small corporate businesses; the inability to claw back previously paid taxes and having to wait to earn profits before they could recoup their tax losses.

“We are urging the Government to reintroduce the loss carry-back initiative allowing companies to claw back their tax paid when they incur revenue loss. 

“The provisions that were introduced struck the right balance between allowing losses and limiting exposure to government revenues by placing a quantitative cap in conjunction with a two-year carry-back period,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission. 

For more information go to: http://bit.ly/2jxoU7L

publicaccountants.org.au

2017 IS EXPECTED to be a year of deliverables for small business and it is important that governments do not lose sight of the sector’s priorities, which would risk undermining future economic growth and prosperity, according to Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell.

“Whether it be small business tax cuts, competition reform, unfair contracts, government procurement or security of payments, governments – and oppositions – have indicated their support for small business, but now we need the rubber to really hit the road; for these measures to be up-and-running and to be proven solutions to a range of small business road-blocks,” Ms Carnell said.

“There are a lot of diverse interests competing for governments’ attention, but the one sector that sits across most – if not all policy areas – is small business, so governments at federal, state and local level must keep the sustainability and growth of this sector at the top of their agenda, if they’re  to keep the broader economy growing.

“There are more than two million small businesses in Australia, employing close to four million people across the country.  Unlike large businesses, the tax revenue generated by our SMEs is on the rise, so their importance should never be underestimated, and their growth shouldn’t be taken for granted,” she said.

While holding governments to account on their small business proposals and promises, Ms Carnell said the ASBFEO also has a packed agenda of its own for 2017.

“Having completed our Small Business Bank Loans Inquiry Report late last year, we will be actively working with the finance sector and ASIC to implement the changes we believe are necessary to restore balance between banks and their small business borrowers, including compliance with unfair contract term laws, along with ensuring a low cost dispute resolution mechanism is put in place to deal with past, present and future claims of small business mistreatment by their bank lender,” Ms Carnell said.

“Our inquiry into payment times and practices is now in full swing.  We’ve had a significant response to the call for submissions and the office is busy going through these in order to report in March on just how bad the problem of late or no payments is for small business, and how we can turn this growing trend around.

“We’ve also finalised a small business statistics report which is a unique document pulling together a range of data to inform on a variety of areas including the size of the sector, its diversity, female participation, innovation and export market participation, which will be released shortly,” she said.

Other issues the ASBFEO has outlined in the 2017 Agenda include reducing Red Tape, improving SME access to government procurement, the promotion of best practice succession planning for family enterprises, and the importance of mental health for small business owners and their staff. 

A copy of the ASBFEO 2017 Advocacy Agenda can be found on the website: www.asbfeo.gov.au

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THE Institute of Public Accountants (IPA) is calling on the government to implement holistic tax reform and in doing so eradicate nuisance taxes.

“Nuisance taxes and termites have something in common; termites eat away at the family home while nuisance taxes erode the revenue base and economic stability,” said IPA chief executive officer, Andrew Conway.

“Payroll tax is an example of a tax that is counterproductive to economic growth; it acts as a disincentive to employment and does not motivate small entities to grow.  It should be removed.

“The IPA supports the Henry Review recommendation that nuisance taxes should be removed and our reliance on direct income taxes decreased.

“A shift towards greater reliance on consumption taxes will encourage savings and investment and provide a more suitable source of revenue.

“Most nuisance taxes which are inefficient, distortive and inequitable are levied by State governments.  Reform in these areas will require an examination of the adequacy of State and Territory revenues.

“Stamp duty is another example of a state based tax which should be either abolished or rates reduced to a level that minimises the drag on the economy.

“We need ‘big bang’ tax reform with consideration of the total tax mix, not necessarily to change the overall tax burden but to deliver a fairer, more effective, internationally competitive and less complex tax system,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission.  For more information go to: http://bit.ly/2jxoU7L

publicaccountants.org.au

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THE Joint Committee of Public Accounts and Audit has launched inquiries into Commonwealth grants administration, infrastructure spending and financial statements as part of its examination of Auditor-General reports.

The JCPAA is a central committee of the Parliament and has the power to initiate its own inquiries on the Commonwealth public sector. The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

Committee Chair, Senator Dean Smith, said that, as Parliament’s joint public administration committee, the JCPAA has an important role in holding Commonwealth agencies to account.

“Grants administration is a significant activity for many Commonwealth agencies, involving the payment of billions of dollars of public funds each year. The Committee has launched an inquiry into this important area, drawing on a number of recent audits,” Senator Smith said.

“The inquiry into Commonwealth financial statements reflects the JCPAA’s role in examining whether public money is used in an efficient, effective, economical and ethical manner. Similarly, the Committee’s inquiry into Commonwealth infrastructure spending will examine whether appropriate steps have been taken to protect the Commonwealth’s interests and obtain value for money in two road infrastructure projects.”

By taking a thematic approach to these inquiries, the Committee seeks to encourage improvements and shared learning in key areas of public administration.

The Committee invites submissions to the inquiries, addressing the terms of reference. Further information about the inquiries can be accessed via the Committee’s website.

The Committee’s inquiries are based on the following Auditor-General reports:

Commonwealth grants administration

• 2015-16 Auditor-General Report No.25 Delivery and Evaluation of Grants Programmes
• 2016-17 Auditor-General Report No. 4 Award of Funding under the 20 Million Trees Programme
• 2016-17 Auditor-General Report No.12 The Design of, and Award of Funding Under, the Living Safe Together Grants Programme
• 2016-17 Auditor General Report No.35 Indigenous Advancement Strategy

Commonwealth infrastructure spending

• 2015-16 Auditor-General Report No.14 Approval and Administration of Commonwealth Funding for the East West Link Project
• 2015-16 Auditor-General Report No.TBC Approval and Administration of Commonwealth Funding for the WestConnex Project

Commonwealth financial statements

• 2016-17 Auditor-General Report No.33 Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2016

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

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THE Australian Cybercrime Online Reporting Network (ACORN) is continuing to boost law enforcements efforts to crack down on cybercrime, with more than 45,500 reports received through the online system in 2016.

"The threat of malicious cyber activity is serious and growing. It endangers the privacy and safety of Australians, the wealth and information generated and held by our businesses and governments, and our national security," Justice Minister Michael Keenan said.

"With (February 7) marking Safer Internet Day 2017, raising awareness of emerging online issues and encouraging all Australians to watch out for common online scams has never been more vital. For consumers, online shopping remains an increasingly attractive option, but Australians need to be wary of fake websites selling counterfeit items and gifts.

"Scammers are known to set up sophisticated websites designed to trick consumers into thinking they’re legitimate businesses, often using a ‘.com.au’ domain name and stolen Australian Business Number (ABN)," Mr Keenan said.

"Protecting the Australian people, economy, our way of life, and making us more resilient to attack is the Australian Government’s top priority.

"The Government launched the ACORN in November 2014 as an easy way for the public to report cybercrime and contribute to a national intelligence database which authorities can use to identify and shut down criminals.

"The leading types of cybercrime being reported to the ACORN are online fraud and scams, with 22,679 reports received, accounting for 43.97 percent of total reports received in 2016. Online trading issues which affect Australians who buy and sell goods online were the second highest type of cybercrime reported, with ACORN receiving 8,783 reports in 2016," the Minister said.

"Victoria received the highest number of cybercrime reports, closely followed by Queensland and New South Wales.

"The majority of reported victims of cybercrime were between 20 and 40 years of age (40%), followed by the 40–60 age group (38%).

"I encourage all members of the public to be vigilant online and work together to ensure a safer and more secure digital environment for all Australians by reporting cybercrime to the ACORN."

The ACORN can be accessed online on the ACORN website.

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AN INQUIRY investigating payment times and practices in Australia is in full swing with preliminary findings confirming that big businesses and some governments are taking longer than ever to pay small businesses.

Early results from the Inquiry – which is being conducted by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in partnership with state-based Small Business Commissioners (SBCs), the Council of Small Business Australia (COSBOA), the Australian Institute of Credit Management (AICM) and the Institute of Public Accountants (IPA) – has found almost 50 percent of small businesses experience late payments on at least half of the bills owed to them.

The Inquiry has also found the practice of late payments is getting worse, with around 60 per cent of small businesses reporting an increase in the trend over the past 12 months.

Almost 70 percent report that the practice has reduced business profitability, with many business owners acknowledging it has a serious impact on their mental health given the added stress and anxiety late payments – and the associated cash-flow problems – can trigger.

Based on the Inquiry survey data, it’s becoming quite clear that big businesses – particularly large multi-nationals – are exploiting the power imbalance that exists in their relationship with small business people who simply aren’t in a position to argue for better payment terms – or to demand immediate payment – for fear of destroying their relationship with the larger company.

The Inquiry has also found the practice is not limited to one sector, with the impact of extended and late payments rippling through the entire economy.

Small businesses have until the end of February to have their say. Those who would like to contribute to the Inquiry can do so by completing a survey which can be found at: www.asbfeo.gov.au. 

An Inquiry Issues Paper is also available on the website.  Those wishing to provide feedback on the Issues Paper can do so by emailing: This email address is being protected from spambots. You need JavaScript enabled to view it. or by contacting the SBC in their state.

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