THE Australian Institute of Credit Management (AICM) has partnered with the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in a bid to ensure small businesses across the country get paid in a timely fashion.

The futures of many family and small businesses are being put under serious threat by the payment times imposed by many big businesses and governments across the country, and this self-initiated enquiry aims to put a spotlight on the lengthy payment times that are being dictated, and often missed.

In a 2013-14 ASIC report into business insolvencies, it was identified that inadequate cash flow contributed to 41 percent of companies going to the wall. This inquiry aims to build up an accurate picture of the time it takes for payment to be processed across all areas of business. 

Nick Pilavidis, CEO of the AICM, whose members are professionals in managing cash flow and risks associated with credit sales, believes this inquiry is critical to not only get an accurate and realistic picture of the payment landscape in Australia, but to help small businesses succeed.

He says, “Cash flow is the lifeblood of all companies, however for small and family businesses it’s absolutely critical. Small businesses are often beholden to corporate clients, who dictate payment times. Lengthy payment times and missed payments can have a significant impact on people’s livelihoods and indeed lives.

“For some businesses, being paid on time will mean being able to pay staff on time. Being paid on time means being able to stay in business.

“AICM members regularly see their SME customers delaying payment to them due to the late payment by large businesses. Improving payment times for small business will have a positive effect on the whole business cycle.

“Late payments have a far greater effect than people may at first envisage. We need to raise awareness of this state of play across the country, and put pressure on big businesses to meet their payment obligations.

“The dilemma for small businesses is that they need to engage with large corporates, yet to operate they need the money to keep flowing in. It’s a vicious circle.

“We hope to get a clear understanding so small businesses will firstly have a good idea of what they’re getting into, and what resources they need to have in reserve, and secondly we hope to work with the large businesses to help them understand the real-life impact they’re having.”

As part of the inquiry, ASBFEO and AICM will be joined by state-based Small Business Commissioners in New South Wales, Victoria, South Australia and Western Australia, the Council of Small Business Australia (COSBOA), federal and state/territory governments and their agencies.

For more information visit www.asbfeo.gov.au/inquiries. Small businesses who would like to have their say can do so at the above website or by phoning 1300 650 460.

FOLLOWING the launch of the IPA Deakin SME Research Centre last week, the Institute of Public Accountants (IPA) has said that the mental health and wellbeing of small business owners will be included in the Centre’s policy focus.

“Small business keeps our economy moving; they sustain our communities and families and we have an obligation to understand their drivers, their challenges and assist them realise their potential,” said IPA chief executive officer, Andrew Conway.

“Running a small business is tough; it is all-consuming. Small business owners have everything on the line and that brings with it real anxiety. This contributes to the existing high rates of depression amongst small business owners.

“We need to delve into the social impact of small business ownership to arrive at a day when starting a small business is seen as a natural and viable first option career path for younger people. 

“The IPA Deakin SME Research Centre will explore small business welfare and the social impact with the intention of driving policy that supports the wellbeing, growth and prosperity of small businesses,” said Mr Conway.

publicaccountants.org.au

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AUSTRALIA’s national resource industry employer group, AMMA, is urging Senate crossbenchers to rise above the union-influenced ALP/Greens/Lambie alliance and do what is in the national interest by voting to restore the Australian Building and Construction Commission (ABCC) and create a new Registered Organisations Commission.

“While the ALP, Greens and Jacqui Lambie have made it clear they won’t support these critical bills, all other crossbench Senators must not be influenced by this lack of objectivity when casting their votes next week,” says AMMA chief executive Steve Knott.

“The resource industry calls on crossbench Senators to instead hold themselves to a higher standard and not ‘walk past and accept’ the well documented unlawful intimidation and thuggery that is occurring in the construction sector.

“Voting to restore the ABCC and establish a Registered Organisations Commission will allow employers and employees to get on with the job, safe in the knowledge that they won’t be targeted by unlawful union industrial tactics or have their work and livelihoods affected by sub-standard, improper or plain corrupt union governance practices.”

ABCC Bill

“Restoring an effective industry watchdog is critical to cleaning up the intimidation, thuggery and outright lawlessness that has re-established an insidious foothold in the building industry,” Mr Knott says.

“Since Labor unceremoniously abolished the ABCC in 2012, productivity in the sector has suffered with days lost to industrial action having increased by 34 per cent.

“The cost of this is borne by Australian taxpayers, mums and dads, and the wider community that is forced to pay well over the odds to build schools, hospitals and other critical community and productive infrastructure.

“The only beneficiaries of turning a blind eye to wilful thuggery and lawlessness are militant union officials and other groups acting in their self-interests. Only a restored ABCC can stamp out such unacceptable and damaging conduct.  

“Australia’s resource employers also welcome the bill’s proposed new rules around unlawful picketing, holding unions more accountable for member conduct, and the extension of the ABCC’s coverage to critically important offshore construction.”

Registered Organisations Bill

“The Registered Organisations Commission will lift standards of governance and accountability in Australia’s employer groups and trade unions, and respond to community and member demands for more effective regulation of registered industrial organisations,” Mr Knott says.

“Increased maximum penalties for registered organisations and their officials will provide a more effective deterrent against the misuse of members’ hard-earned contributions.

“If such measures were in place years ago, this would have helped to avoid scandals such as that involving the Health Services Union that exposed union officials for doing anything but representing and advancing the interests of their members.

“The resource industry urges all Senators to ensure all Australian trade unions operate lawfully and transparently by voting in favour of these two critical workplace relations reforms.”

www.amma.org.au

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THE Institute of Public Accountants will be holding its National Congress from November 23 to 25.

Venue is the Grand Hyatt, Melbourne.

The official opening address on Thursday, November 24, will be by IPA Chief Executive Officer, Andrew Conway.

Keynote speakers at the IPA National Congress include: 

• David Morrison AO, Australian of the Year
• Steve Price, Media Commentator
• Richard Grimes, President, International Federation of Accountants
• Kevin Sheedy, AFL Legend

Other presenters include:

Dr Michael Schaper (Deputy Chair, ACCC); Matthew Drennan (Group Head of Research, IOOF); Sandra Ragg (Assistant Director Cyber Policy, Office of the Prime Minister); Amanda Falconer (Talking Brand); Susan Young (principal, Susan young Tax Training); Sam Allert (Reckon); and many more.

Further details of the conference program can be found at:

http://www.publicaccountants.org.au/events-and-training/conferences

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THE PAYMENT practices of big businesses and governments across the country will be put under the microscope by Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell during an inquiry aimed at weeding-out patterns of behaviour that are undermining the financial viability of small businesses and putting pressure on the entire economy.

The ‘Payment Times and Practices’ Inquiry is the first self-initiated inquiry undertaken by the ASBFEO.  It will be led by the ASBFEO in partnership with state-based Small Business Commissioners in New South Wales, Victoria, South Australia and Western Australia, and will be carried out in association with the Council of Small Business Australia (COSBOA) and the Australian Institute of Credit Management (AICM).

The Inquiry will also seek input from federal and state/territory governments and their agencies.

Anecdotally, small businesses are reporting that some large businesses are taking longer than ever to pay their bills; this Inquiry aims to establish an accurate picture of the trends that have emerged in recent years surrounding the commercial arrangements between large and small businesses, as well as governments and small enterprises.

The Inquiry will assess the impacts these trends are having and will identify practical solutions – including possible regulatory and market-based responses – that can be implemented quickly and effectively to help address identified problem areas.

The Inquiry will seek input from businesses and other industry stakeholders through submissions, an online survey as well as through public consultations, with the final report expected in March 2017.

One of the number one issues impacting small business productivity here in Australia is unfair payment practices – specifically late payments – with some research suggesting Australia lags well behind the rest of the world when it comes to paying invoices on time.

Cash flow is king to small business; late payments can be the difference between success and insolvency so it’s vital these sorts of unfair payment practices are stamped-out to ensure small businesses can reach their full potential, and in doing so, continue to contribute substantially to the overall health of the national economy.

Inquiry Terms of Reference are available at www.asbfeo.gov.au/inquiries.  Small businesses who would like to have their say can do so at the above website or by phoning 1300 650 460. 

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AUSTRALIA’s resource industry employer group, AMMA, has called for future closures of coal-fired power stations to be properly planned, notified well in advance and based on facts and informed discussion to avoid risking Australia’s long-term energy security and leaving people jobless.

The advice was provided to a Senate Environment and Communications References Committee inquiring into the long-term transition from coal-fired power stations to renewable energies, including policy mechanisms to speed up the process and mitigating the economic and community impacts.

“Australia requires genuine and constructive policy discussions on our energy future, including on the emergence of renewable sources and ensuring we meet our international obligations such as those agreed in Paris,” says AMMA head of policy Scott Barklamb.

“However, discussions on future power generation in Australia must also be firmly grounded in facts. For instance, while there will be a considerable shift in investment towards renewables over the next 25 years, the World Energy Council projects fossil fuels will remain the dominant producer of electricity until at least 2050.

“Industry, employees and communities need greater certainty on future transitions and the energy mix Australia will pursue across future decades.”

AMMA has called for a National Energy Transition Plan be developed, including harmonised renewable energy targets, that ensures affordable, reliable and secure energy and delivers measured transitions that are as fair as possible for employees, communities and the industry.

“While government will have an important role in promoting and incentivising new sustainable energy technologies, its first priority must be maintaining access for Australian industries and communities to affordable and proven reliable energy sources,” Mr Barklamb continues.

“We are also concerned about naïve optimism that the renewable energy industry can seamlessly pick-up all jobs lost from coal fired power stations.  Unfortunately, there is minimal geographical commonality between Australia’s current coal fired power stations and where our potential for renewable energy will emerge.

“Even if former coal-fired power station employees had perfectly transferable skills and experience, most would have to relocate to find employment. We’ve seen through the commodity price and investment boom that Australians have a low appetite for relocation.

“It is also unlikely that the renewables industry will require a similarly labour intensive operational workforce as existing coal fired power generation.

“The key challenge for governments will be implementing energy transitions predictably and transparently, while minimising losses of existing jobs, maintaining energy security and positioning Australia’s energy sector as an attractive and globally competitive place to invest and do business.”

The Committee’s interim report is due by 28 November 2016, with a final report by 1 February 2017.

Click here to read AMMA’s submission. Click here for more information on the inquiry.

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THE natural resources sector must promote its economic credentials, innovation, vital link to everyday products and social licence to operate, says outgoing Queensland Resources Council Chief Executive Michael Roche at its 2016 Annual Lunch today.
 
Addressing almost 700 people on his last day in the peak body’s top job, Mr Roche said the natural resources sector’s contribution was being taken for granted.
 
‘No industry sector is more fundamental to the future of Queensland than resources. Everything that is not grown comes from the natural resources sector,’ Mr Roche told the audience.
 
‘There is no viable substitute for coking coal in the production of blast furnace steel.
 
‘There is no ‘Uber’ process waiting in the wings and steel use per capita is one of the hallmarks of an advanced economy.
 
‘In fact all of our commodities – our alumina and bauxite, copper, gas, gold, lead, mineral sands, silver and zinc, will remain in demand while ever people want to enjoy the many facets of their everyday lives.’
 
Mr Roche said it was no secret that the sector had moved onto a new chapter - moving out of a record period of capital expenditure – to a phase where operational expenditure dominated.
 
‘However, parts of the sector are experiencing better commodity prices. Who would have thought thermal coal would be over $110/tonne and coking coal over $300/tonne, while zinc and copper are also on the comeback trail,’ Mr Roche said.
 
‘As the QRC Resourcing Innovation campaign illustrates, these commodities, and more, are vital components in renewable energy and related infrastructure and everything from smartphones, fridges and public transport, just to name a few.
 
‘Ironically, the green activists who constantly denigrate the natural resources sector, are more than happy to use all of the products for which the sector provides the vital ingredients.
 
Mr Roche noted that QRC has the good fortune to have the country’s longest serving Federal resources minister, Ian Macfarlane, as his successor.
 
‘I wish Ian him the best of luck for his time at the helm of the QRC.’

Michael Roche's speech is available at qrc.org.au/media-centre/speeches-presentations/

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AUSTRALIAN companies are being given the chance to win work on the multi-billion dollar LAND 400 Phase 2 armoured vehicle program during a series of workshops to be held nationwide. 

 The workshops were launched in Melbourne today by Minister for Defence Industry, Christopher Pyne and aim to give local businesses an opportunity to showcase themselves and join the significant supply chain.

Minister Pyne said maximising Australian defence industry involvement to create and sustain jobs and spur economic growth is at the centre of the Government’s plans for the groundbreaking project.

“LAND 400 gives us the opportunity to modernise our military and boost domestic manufacturing which will create and sustain jobs in Australia,” Minister Pyne said.

“We have actively encouraged Australian industry participation – particularly in assembly, systems design, integration, testing and evaluation as well as sustainment.

“More than 400 eligible Australian companies have registered to present their capabilities to BAE Systems Australia and Rheinmetall, the two companies shortlisted to participate in the next stage of the tender evaluation process.

“This is the chance for suppliers to get their slice of a very big pie,” Minister Pyne said.

The workshops will travel to all Australian states and territories, finishing in Hobart.

• Geelong - 14 November
• Melbourne - 14-18 November
• Perth - 21-22 November
• Adelaide - 23-25 November
• Darwin -28 November
• Townsville -29 November
• Brisbane -  30 November - 2 December
• Newcastle- 5 December
• Sydney - 6-8 December
• Canberra - 9 December
• Burnie (Tasmania) - 12 December
• Hobart - 13 December

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