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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PARLIAMENT'S Northern Australia Committee will hold the first public hearing for its inquiry into Opportunities and Methods for Stimulating the Tourism Industry in Northern Australia on Friday, February 17, 2017 in Parliament House, Canberra.

Following the Australian Government’s 2015 White Paper on developing Northern Australia, the Government announced in February 2016 the Northern Australia Tourism Initiative.

he Initiative includes the Entrepreneurs’ Programme for Tourism, Northern Australia which is designed to help businesses commercialise novel products, processes and services as well as improve their productivity and competitiveness.

The Committee Chair, Warren Entsch MP, stated, ‘Broadening the experience offered to international and domestic visitors to Northern Australia will help to increase visitor numbers and the duration of their stay, thereby boosting the regional economy. The Entrepreneurs’ Programme has an important part to play in allowing tourism operators to tap into the wealth of potential tourist experiences offered in Northern Australia.’

The Committee will receive evidence from the Entrepreneurs’ Programme for Tourism, Northern Australia as well as several government agencies involved in facilitating tourism in Northern Australia.

The hearing program and further information about the Committee’s inquiry, including the terms of reference is available on the Committee’s website: www.aph.gov.au/jscna.

Public Hearing Details: 8am to 10:50am, Friday February 17, Committee Room 1R3, Parliament House, Canberra

The hearing will also be webcast at www.aph.gov.au/live.

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

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THE House Standing Committee on Agriculture and Water Resources has begun an inquiry into water use efficiency.

Australia is spending record amounts to modernise its irrigation infrastructure in an effort to make agricultural water use more efficient and increase the amount of water available for environmental flows.

Committee Chair Mr Rick Wilson MP said that the Committee’s inquiry will focus on the benefits these upgrade programs provide for irrigators as well as the value for money they represent, and will also seek to identify any areas where resources may be better directed.

“The agricultural sector is obviously very important to the Australian economy and irrigated agriculture is a big part of that,” Mr Wilson said. “The Committee wants to make sure that Australia is getting the best outcomes from these programs that we possibly can.”

The Committee will be accepting submissions to the inquiry until 31 March 2017.

The inquiry will focus on:

• the adequacy and efficacy of current programs in achieving irrigation water use efficiencies,
• how existing expenditure provides value for money for the Commonwealth,
• possible improvements to programs, their administration and delivery, and
• other matters, including, but not limited to, maintaining or increasing agricultural production, consideration of environmental flows, and adoption of world's best practice.

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

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THE House of Representatives Standing Committee on Communications and the Arts has received an inquiry into the Australian Film and Television Industry and is calling for submissions.

The inquiry’s Terms of Reference are:

Factors contributing to the growth and sustainability of the Australian film and television industry.

Committee Chair, Mr Luke Howarth MP said: “the committee wants to hear how Australian independent filmmakers, and major film and TV companies can expand and better compete for investment with producers and multi-platform production companies from overseas.”

“We also want to hear from investors and the industries that support local production, for example: digital animators and editors, and sound and set production companies,” Mr Howarth said.

Screen Australia’s Drama Report (2015-16) notes that Australian films have recently performed the strongest in more than a decade, with four titles each earning over $10 million (including: Mad Max: Fury Road, The Dressmaker, Oddball and The Water Diviner) and contributing 7.2 percent to total box office sales.

Screen Australia’s report also suggests that 2015 was a standout year for Australian films – well up on the previous year, when the share was 2.4 per cent, and above the 10-year average of 4.3 per cent.

Mr Howarth added: “As a committee, we believe Australian film and TV can be more competitive, and we will be investigating ways the Australian industry can grow sustainably.”

Submissions are being sought by Friday, March 31, 2017, and can be made online through the webpage: www.aph.gov.au/FilmTV or emailed to the secretariat at This email address is being protected from spambots. You need JavaScript enabled to view it..

Inquiry updates, submissions and public hearing transcripts will be published on the webpage as the inquiry progresses.

Website: www.aph.gov.au/FilmTV

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

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THE Joint Standing Committee on Trade and Investment Growth held its first public hearing in Canberra today.

The committee is inquiring into Australia’s trade and investment relationship with Indonesia.

The Department of Education and Training appeared before the committee to discuss the education sector.

This is an important sector, which contributed over $19 billion to Australia’s economy in 2015-16 through the export of education-related services, which are one of Australia’s largest service exports. Further, Indonesia is Australia's eighth largest source country for international students, contributing $619 million into the economy.

Education is, therefore, a vital component to Australia’s overall trade, and, an area where growth opportunities should be examined.

Chair of the Committee, Mr Ken O’Dowd said, “In addition, there are broader social and cultural benefits of international education including developing a skilled workforce, international collaboration, opening up new markets for Australian businesses, and building cultural awareness.”

The hearing was audio webcast live at aph.gov.au/live. 

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

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AUSTRALIA'S current mix of taxes is not fit for purpose and is stifling the country’s growth potential according to the Institute of Public Accountants (IPA).

“Australia desperately needs large scale tax reform if it is to address the current fiscal issues we face and it’s beyond time that the Government delivered on its commitment for a promised tax white paper,” said IPA chief executive officer, Andrew Conway.

“We are not advocating for a change in the overall tax burden but rather a change in the mix to deliver a fairer, more effective, internationally competitive and less complex tax system.

“There have been too many stop-starts when it comes to much needed reform.  Tax reform represents one of the strongest levers the Government has at its disposal to revive productivity, competitiveness and growth.

“Australia faces interconnected twin challenges: ensuring fiscal sustainability, as outlined in the recent MYEFO update, combined with the need to boost productivity growth to sustain growth in living standards.

“A shift to growth supporting taxes is required to sustain Australia’s economic momentum and meet all current and future spending needs.  The current taxation mix is insufficient to meet expenditure commitments and Australia faces a revenue funding gap, especially in light of the fall in the terms of trade and sluggish national income growth.

“Our tax base is too narrow, unstable and uncompetitive.  We believe the terms of reference for the white paper should be broad and include the GST as part of the mix; true reform will not be achieved if the total tax mix is not considered.

“Consumption taxes such as GST represent one of the most efficient and sustainable tax bases available; yet, Australia’s GST base is relatively narrow and covers less than 50 per cent of private consumption which gives Australia the seventh lowest coverage ratio amongst 32 OECD countries.

“The current political environment has made ‘big bang’ tax reform extremely difficult for the major political parties.  As a way forward, consideration should be given to establishing an independent tax reform commission to support tax policy decision-making,” said Mr Conway.

These recommendations form part of the IPA’s 2017-18 pre-Budget submission. Go to http://bit.ly/2jxoU7L

publicaccountants.org.au

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THE CHIEF Executive of the Queensland Resources Council has called on the Federal Government to invest in a high-technology power station for North Queensland.
 
Speaking in Townsville at a business breakfast, Mr Macfarlane said a chunk of the $5 billion Northern Australia Infrastructure Fund could be used for a modern high efficiency, low emission (HELE) power plant.
 
“It needs to be a less ideological argument about where we get our energy from and a more practical discussion about how we provide both reliable and cheaper electricity and reduce green house gas emissions,” Mr Macfarlane said.
 
“If we’re going to use technologies and government grants for renewables then we should also use it for coal, which provides stable base load power.
 
“And we have some of the highest quality, low emission coal in the world right here in Queensland.
 
“The plant would need federal funding to provide a long-term base load for both business and households in the north.”
 
Mr Macfarlane said – regardless of what the foreign funded green activists chant – the reality is that coal-fired electricity and renewables will be part of the future for decades to come.

www.qrc.org.au

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THE House of Representatives Standing Committee on Infrastructure, Transport and Cities will today table its report, Harnessing Value, Delivering Infrastructure, which was released last December.

The report is expected to be tabled today, at approximately 4.15pm (following the MPI), by Committee Chair Mr John Alexander MP

The report advocates urban renewal and decentralisation, facilitated by strategic planning of transport infrastructure—especially high speed rail—funded by value capture.

Mr Alexander says vision and innovation are needed to rebalance our settlement, rebuild our cities and develop infrastructure funded by the wealth it creates.

“Investing in this infrastructure will liberate our regions’ potential as locations for housing and business through ready access to the economies of our major cities,” Mr Alexander says. “This is the central purpose of high speed rail. This plan of urban renewal and decentralisation, facilitated by strategic planning of infrastructure, will deliver an abundant affordable housing supply for generations to come.”

The Committee has recommended developing value capture mechanisms to fund new transport infrastructure and the development of high speed rail to facilitate new patterns of settlement in Australia.

The Committee has also recommended:

• developing a framework for the specification and evaluation of proposals for the development of a High Speed Rail Network in Eastern Australia
• investigating options for private funding of High Speed Rail through value capture
• the monitoring and investigation of other technological innovations for transport connectivity
• recognising the potential of value capture to contribute to the costs of new transport infrastructure
• developing a system for coordinating the planning and funding of major infrastructure projects across all levels of government
• coordinated procurement of vehicles and rolling stock for transport infrastructure
• establishing value capture mechanisms for individual transport infrastructure projects as a condition of federal funding
• developing a toolkit of value capture mechanisms that can be applied by all levels of government
• continued roll-out of City Deal-type agreements with the various state, territory and local governments
• developing a consistent and coordinated approach to the application of value-capture to major infrastructure projects, with the Australian Government acting as the single-point for the collection of value capture revenues.

A copy of the report can be obtained from the Committee’s website or from the secretariat on (02) 6277 2352.

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

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