SMALL BUSINESS – AUSTRALIA

NAB simplifies its small business lending contracts

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 6-Oct-17

National Australia Bank has advised that its standard contract for small business loans has been streamlined to make it "simple, fairer and more transparent". The number of clauses in the standard contract has been reduced from 24 to just 17, while it includes a summary of key terms in plain English. The new contracts will apply to about 98.7 per cent of the bank’s business customers. The move to simplify small business lending contracts follows criticism of the banking sector’s existing contracts by small business ombudsman Kate Carnell earlier in 2017.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN LABOR PARTY

Delay likely for small business waiting on penalty rate trade-off

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Original article by Ewin Hannan
The Australian – Page: 4 : 1-Sep-17

A proposal to allow smaller retailers and fast-food restaurants to scrap penalty rates and overtime pay in return for a 25 per cent increase in base pay has the support of Council of Small Business Australia CEO Peter Strong. However, the Fair Work Commission is not expected to consider permitting a trial of "loaded rates" before the second half of 2018. Strong says unions and employers’ groups that represent large companies are likely to object to the proposal, as many such companies have already traded off Sunday penalty rates in their enterprise agreements.

CORPORATES
COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. FAIR WORK COMMISSION, ACTU, AUSTRALIAN LABOR PARTY, AEROCARE OPERATIONS PTY LTD, TRANSPORT WORKERS’ UNION

Slap for exemptions in Labor ‘tax grab’

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Original article by Joe Kelly
The Australian – Page: 5 : 11-Aug-17

The Federal Opposition has been attacked over its plans to exempt farmers from its proposed crackdown on the taxation of discretionary trusts. Labor has claimed that its proposed changes will raise $A17 billion over 10 years. Shadow treasurer Chris Bowen says the exemption of farmers is warranted on the grounds that their income fluctuates. However, Small Business Minister Michael McCormack says the same argument could be made for small business owners, and Labor is not planning to exempt them from its changes.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE

Penalty rates plan for small business

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Original article by Joe Kelly
The Australian – Page: 2 : 10-Jul-17

A report from the Institute of Public Affairs argues that the reduction in Sunday penalty rates will make small businesses more competitive against larger rivals. The report proposes changes to the industrial relations system to allow employers and workers to negotiate their own penalty rates independently of the Fair Work Commission. The IPA also suggests that new businesses could adapt existing enterprise bargaining agreements rather than having to negotiate their own workplace deals.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

PM urged to decide on Finkel

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Original article by Joe Kelly
The Australian – Page: 5 : 20-Jun-17

Council of Small Business of Australia CEO Peter Strong says many firms in the sector will collapse and jobs will be lost unless the Federal Government acts quickly on the Finkel review’s recommendations on energy policy. He says the Council of Australian Governments should hold an emergency meeting to discuss the findings of the review. Strong will release COSBOA’s energy policy on 20 June. The Small Business & Family Enterprise Ombudsman, Kate Carnell, has called for bipartisan political support for action on energy security.

CORPORATES
COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST

Major banks reduce legal powers over SME customers

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Original article by James Eyers
The Australian Financial Review – Page: 16 : 1-May-17

All four of Australia’s major banks have made changes to the terms of their loans to small businesses. The changes, which were recommended by small business ombudsman Kate Carnell, relate to "non-monetary default" clauses in loan contracts. The changes will apply to loans of up to $A3 million, although in the case of Westpac and the ANZ, they will only apply to new loans or when an existing loan is being renewed or modified. The Commonwealth Bank and National Australia Bank will apply the changes to both new and existing loans.

CORPORATES
AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN BANKERS’ ASSOCIATION

PayPal takes $85m slice of SME lending pie

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Original article by Michael Bennet
The Australian – Page: 23 : 8-Jul-16

PayPal has written more than $A85 million worth of loans to about 3,000 small businesses in Australia since late 2014. Darrell Esch, the global general manager of small and medium business lending at PayPal, is amazed by the rate of growth at PayPal Working Capital. The program’s combined figure for loans in the US, Great Britain and Australia exceeds $US2 billion ($A2.6 billion).

CORPORATES
PAYPAL AUSTRALIA PTY LTD, PAYPAL INCORPORATED, SOCIETYONE AUSTRALIA PTY LTD, PROSPA FINANCIAL PTY LTD, MACQUARIE SECURITIES PTY LTD, ETTITUDE AUSTRALIA

Labor’s crackdown on negative gearing ‘a threat to small business’

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Original article by David Uren
The Australian – Page: 1 & 6 : 7-Mar-16

CPA Australia’s senior tax counsel Paul Drum has warned that the Federal Opposition’s proposed changes to the negative gearing regime could adversely affect small business owners, particularly sole proprietors. The Australian Labor Party proposes to restrict negative gearing to new properties if it wins the 2016 federal election, but shadow treasurer Chris Bowen rejects suggestions that the reforms would affect business financing.

CORPORATES
CPA AUSTRALIA, AUSTRALIAN LABOR PARTY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, NSW BUSINESS CHAMBER LIMITED, CRYSTAL WEALTH PARTNERS LIMITED, OMNIWEALTH PTY LTD

Retailers hit with 10pc hike in insurance cover

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 28-Jan-16

Figures from commercial insurance comparison website BizCover show that small-to-medium businesses continue to benefit from strong competition in Australia’s insurance market. The retail sector is an exception. An insurance policy for a retail business may cost around $A1,700. A non-retail company would pay $A1,000 for a comparable cover. BizCover’s Small Business Insurance Index rose by five points in the fourth quarter of 2015.

CORPORATES
BIZCOVER PTY LTD, ALLIANZ AUSTRALIA LIMITED, AIG AUSTRALIA, QBE INSURANCE GROUP LIMITED – ASX QBE

Small business warning

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Original article by James Eyers
The Australian Financial Review – Page: 15 : 1-Apr-15

The Australian Bankers’ Association’s submission on the financial system inquiry has broadly supported the recommendations on increased capital requirements for the nation’s banks. However, it has questioned the need for local banks to be in the top quartile of banks globally. The submission also raises concerns over the proposal for credit contracts to be covered by laws on unfair contracts, noting the potential impact on loans to small businesses

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION