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e-news | July 3rd, 2009 |
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Business NewsTax man to provide some relief for businesses under pressureThe ATO has announced new measures to help businesses with an annual turnover of less than $2 million that are struggling to manage their tax debts in the current economic climate. Tax Commissioner, Michael D’Ascenzo, said that the ATO would offer twelve month general interest charge (GIC) free payment arrangements, and would defer the payment date for activity statements. “We don’t want the GIC or temporary cash flow problems to be the deciding factors between a business surviving and being able to meet its tax and superannuation obligations or becoming insolvent. Businesses need to contact us as early as possible to discuss their circumstances so we can negotiate a sustainable interest free payment arrangement. Businesses with an annual turnover of less than $2 million with an activity statement debt can apply for a GIC free payment arrangement from now until 30 June 2010. They will have the GIC remitted for a maximum period of 12 months, provided the payment arrangement is maintained. Small businesses can also request a deferral of payment on their next activity statement. Businesses with short term cash flow problems that pay quarterly and annually may be granted a deferral of up to two months, with those that pay monthly eligible for up to one month. Businesses with a tax debt or experiencing payment difficulties should visit the Tax Office website www.ato.gov.au/businessdebt or phone 13 11 42 from 8.00am – 6.00pm Monday to Friday Training subsidies extended to over 25sAll workers over 25 who are retrenched because of the global recession will now be entitled to a government-subsidised training place following the Federal Government’s decision to broaden the scope of the guaranteed education or training package announced a few months ago for under-25s who had lost their jobs. The Government has allocated $300 million for the training and says as many as 120,000 people are likely to access the new program. Employment Participation Minister, Mark Arbib, said "Workers who have been retrenched will get access to a training place and a government vocational education and training qualification," he said. Quick summary of major changes arising from Fair WorkThe Australian Retailers Association has put out a summary of the significant changes that the new Fair Work (FW Act) mandates from the start of this financial year. It has provided a handy rundown of the features of the new workplace relations system which now apply to employers including:
Further significant changes to the national safety net and award system due to commence on 1 January 2010. For more information, go to www.fairwork.gov.au or telephone Fair Work Infoline 131 394 My Business: Venture capital still slumbersThe Global Financial Crisis has put the skids under venture capital and private equity funds with investors cautious about the wisdom of contributing capital to these funds managers. But in the July issue of My Business magazine, Adrian Herbert, the editor of the Australian Private Equity and Venture Capital Journal, argues that the tide could begin to turn in the coming months. According to Herbert, we are clearly at a turning point for the industry. Private equity deal flow has reduced to a trickle despite more good opportunities being available than have been for years. According to London-based research company Preqin, across all private equity fund types a total of only 78 funds achieved final closes in the first quarter of 2009 – a small percentage of the more than 1600 currently fundraising. In Australia and New Zealand, a number of fundraisings were completed during the first quarter of 2009. Whether this resilience will continue in the second quarter is unclear. The $38 million allocated by the federal government to the new Innovation Investment Follow-on Fund will provide some small stimulus, but the sector may need much more. Private Equity Media, the publisher of Private Equity & Venture Capital Journal, has released the 2009 edition of the Australian Private Equity & Venture Capital Guide which lists more than 200 sources of equity capital in Australia and New Zealand. For more information visit www.privateequitymedia.com.au or Tel 03 8534 5000 Retailers optimistic as steady growth continuesThe Australian Retailers Association (ARA) said the one per cent growth in retail turnover for the month of May reflected the positive economic indicators in the market and continued the strong and steady growth since the beginning of the year. The latest figures from the Australian Bureau of Statistics (ABS) showed turnover from large retailers and retail chains rose by 2.5 per cent, while that of smaller retailers rose by 2.3 per cent. ARA Executive Director Richard Evans said the strong May retail figures confirmed the positive trend that had emerged in the last few months. “There has been solid retail trade growth in each month, with the exception of February which is traditionally the toughest month for retailers," Evans said. "The May retail trade reflects the rise in consumer confidence and other positive indicators including the Government's economic stimuli and the RBA's interest rate cuts from late last year flowing through. He said that “Growth in clothing and soft goods retailing (2.9%) and department stores (5.5%) reflects the change of season and we expect to see some more recovery in this sector when June stocktake sale figures are released. Don’t miss out on entering the 2009 ActionCOACH My Business AwardsThe team at My Business magazine invites you to enter the 2009 ActionCOACH My Business Awards. You can be in the running to have your business recognised for achieving excellence in your field. There are a total of 10 categories in this year’s Awards, plus the overall ActionCOACH Award for Outstanding Excellence. The Winner from each category is automatically entered into this Award.
Entry is FREE, quick and easy, yet the returns could be enormous for your business and your staff. Each Category winner receives $5000 worth of products and/or services, tailored to suit their business needs from the Category Sponsor. You are invited to enter the Awards up until Wednesday 26th August 2009. Enter online at www.mybusiness.com.au/awards09 or post your submission according to the entry guidelines. Our past Award finalists and winners have benefited from the resulting publicity and exposure through My Business magazine, and sponsor networks. With the numerous leveraging opportunities involved in such a credible Awards program, why would you not want to be in it? Also, each category’s three finalists will receive one free ticket to attend the Gala Awards presentation ceremony on Friday 2nd October 2009 at Doltone House, Pyrmont in Sydney. It will be a fabulous night of fun, food and entertainment with Australia’s popular dance band, Boogie Fever, as we celebrate the best of the best. National Unit Pricing Code now lawAustralian consumers will soon have access to nationally-consistent unit pricing information at all large supermarkets and online grocery retailers. The Retail Grocery Industry (Unit Pricing) Code is now law and requires large and online supermarkets to display unit prices for all items for which a selling price is displayed, unless the item is specifically exempt. There will be a transition period and the Code will become mandatory on 1 December 2009. Unit pricing is where grocery items are priced by reference to common units of measure such as per 100 grams and per 100 millilitres. The ACCC said that unit pricing will let shoppers compare the price of grocery items more accurately at the supermarket, enabling them to drive their dollar further. Submissions to the ACCC Grocery Inquiry estimated that unit pricing could save households $96 a year. Customers might think that by buying larger packets that they might always be buying cheaper but that's not always the case. Brad Sugars to tour AustraliaThe man many people have described as the World’s leading business coach, Australian Brad Sugars will be returning to Australia for a five cities in five days tour between August 10 -14 to explain exactly why “Business is Booming”. Sugars, the head of international coaching company, ActionCOACH, said that attendees at the seminars will walk away with:
Whilst most business owners were worrying over the current financial crisis, Sugars and his team at ActionCOACH have experienced an entirely different run of events. “Month on month, year on year, since long before the so-called recession began, ActionCOACH, as well as the clients, they service experienced continual growth.” Brad Sugars’ main company ActionCOACH now has more than 1,000 offices in 26 countries, and is ranked as the leading business coaching company in the world and one of the top fast growing franchise systems. His business has also been featured by Entrepreneur magazine as one of the fastest growing franchises in the world for the past 6 years running. Sugar writes a monthly column for My Business magazine and has maintained his stance throughout the economic instability. "If you have the knowledge, skills and guidance you can turn the situation into a fantastic opportunity for your business." My Business has made a special arrangement with ActionCOACH and My Business eNews readers can attend FREE by using code MB002. So, simply log on to www.businessisbooming.biz and register NOW! B2B deals to be excluded from revised consumer lawThe Rudd Government has announced that business-to-business deals will be excluded from new laws banning unfair contract terms in standard-form contracts. The Federal Government has backed away from its intention to make new consumer laws apply in business-to-business contracts, including franchise agreements. The decision by the Government follows strong representations by the franchise sector that it would be counter-productive to make the new consumer laws apply to franchise agreements. The Franchise Council of Australia (FCA) commented that the new national consumer law, now set to proceed through Federal Parliament, is a “sensible move to attain consistency across the currently differing State consumer laws. It is consistent with the Government’s intention to cut back red tape and remove obstacles presented by potentially conflicting State laws.” The FCA took issue with the plan to make the new national code apply beyond the consumer arena and into business-to-business contracts. Franchising already has a specific code which is aimed at reinforcing fairness in franchisor-franchisee contractual relationships. Consumer Affairs and Small Business Minister Craig Emerson announced the exclusion as the Government's new national consumer law bill was introduced into Federal Parliament recently. The ban on unfair contract terms, which is due to start in January 2010, was designed to protect consumers from issues such as unfair exit fees, penalty fees and clauses that permit one party to unilaterally change or cancel a contract. Franchisors were particularly concerned, as they often rely on contract terms that stipulate a franchisor can change the business model if and when they decide. Under the new legislation, these typical contract terms could have been deemed "unfair". My Business: Managing your debtsTo stay afloat in the current economic climate you need to keep a tight rein on your cash, but according to a recent CPA survey, 25 per cent of small businesses never chase up late payments. In July’s My Business magazine accounting consultant, Donna Stone, offers effective tips on how to collect your debts and make sure you keep the cash coming into your business. Stone suggests drafting a Client Agreement and having your solicitor check it over. It’s important to have an agreement in place in respect of payment terms, interest charges or late fees and to have it clearly in writing before the fact. She also recommends chasing outstanding debts on a weekly basis. It’s a statistical fact that the longer you let a debt go, the less likelihood it will be paid. Stone advises hiring someone other than your salespeople to make the phone calls regarding unpaid accounts. They should be professional and friendly, but firm. They should have a set routine and document everything. If your clients realise that late payments won’t be overlooked or ignored they will begin to improve with time. As important as it is to be firm, Stone does also point out that a degree of flexibility is required. You have to sort out those that are spinning you a tale from those with genuine reasons for non-payment. For the latter, consider offering a repayment plan that makes the debt more manageable. Franchising & Business Opportunities Expo next monthThe Melbourne Franchising & Business Opportunities Expo will be held between Friday 14 -Sunday 16 August at the Melbourne Convention Exhibition Centre More than 80 exhibitors displaying their franchise opportunities are expected to register for the annual event which usually attracts in excess of 4000 people. Franchise groups has said that the current downturn is forcing many people to reassess their future as employees and to give serious consideration to running their own franchise or licensed business system. For more in formation about the Expo, please visit www.franchisingexpo.com.au My Business: Choosing the right time to sellAccording to Peter Gwynne, the group managing director of Hallmark Business Sales, the most frequently asked question by concerned business owners is, ‘Is now a good time to sell my business, or am I better to wait?’ In July’s My Business magazine he reviews the impact of tough times on the value of your business. Gwynne believes the best advice is to try and sell when the business is in god condition, as this is what drives a sale. If a business is performing or even out-performing the economic cycle then it is always a good time to sell. When a seller is ready to sell for whatever reason – whether tired, wanting to retire, or looking for a lifestyle change – it’s also a good time to sell. An owner who doesn’t want to be there is a recipe for a business downturn and a fall in business value. But before selling or considering selling, it’s essential to have a plan. You need to have an understanding of what your business is worth and as an SME you should have your accountant or a business valuer prepare a proper valuation. No business owner in a strong sector should accept less money for their business in this or any other environment. ARA welcomes retail exemption from consumer credit lawsThe Australian Retailers Association (ARA) said retailers across Australia welcomed their exemption from the Federal Government's new Consumer Credit Protection Bill. ARA Executive Director Richard Evans said that the legislation would have had unintended, adverse effects on retailers. "The ARA has been providing advice to the Government on this issue and its impact on the 22,000 retailers, including almost 9000 small businesses, using Point of Sale finance via 10 consumer credit providers," Evans said. "The decision to exempt retailers from aspects of the Consumer Credit Protection Bill relieved retailers across Australia from an expected $760 million in compliance costs.” "The draft Consumer Credit Protection Bill included unintended consequences which meant retail staff would need to be trained, accredited, registered and licensed to offer credit assistance to the same level as finance brokers. "This was an unnecessary burden on retailers which could have cost up to $27,000 in staff training and other obligations for each individual retailer.” My Business: Killing your business with discountsAs the fear of long-term recession grows stronger, many stores are offering higher and higher discounts. In July’s My Business magazine business mentor, Andrew Carter, offers a word of warning on the impact of excessive discounting on your business’ profitability. If you have a 50 per cent margin on the goods that you sell and you offer a simple 20 per cent discount, you actually need to increase sales of that product by 67 per cent just to make the same amount of profit. A 30 per cent discount on that 50 per cent margin means you need to increase sales by 150 percent to make the same profit. In most cases, discounting simply doesn’t work. But that doesn’t mean you should never discount. There are several situations in which Carter actively encourages it. The first is to encourage spending. If you know that the average customer purchases say five items per visit and spends on average a total of $150 on those items, you may consider heavily discounting on a particular item in order to get customers through the door. A small discount to entice a repeat customer is also acceptable. In the case of old stock, Carter recommends trying to find other ways of selling that stock before considering discounting. For example, can you value add other products or services to make it look more appealing, or move it through auction sites such as eBay. Despite the economic doom and gloom, you need to actively start setting your business up for what you want it to be in the future and start properly marketing it that way instead of discounting prices just because everyone else seems to be. Record payout for SA harassment victimA woman sacked after complaining about being sexually harassed while working for a prominent builder has received the largest sex discrimination payout ever awarded in South Australia.
Polish-born mother of two Malgorzata Poniatowska was awarded $466,000 by the Federal Court of Australia. The court found the 42-year-old was subjected to unwanted sexual advances from two employees at the Hickinbotham Group when she worked for SA's largest house builder in 2005 and 2006. Ms Poniatowska's lawyer, Peter Humphries, said outside the court the payout was a record amount for sexual harassment in SA. Ms Poniatowska said she was "very happy" with the result, and urged others suffering sexual harassment to stand up for their rights. Women too modest to nominate themselves for AwardsAustralian women are very modest when it comes to recognising their professional achievements, the Telstra Business Women’s Awards nomination process has revealed. Ms Holly Kramer, Group Managing Director, Telstra Product Management and Telstra Business Women’s Awards Ambassador, said despite their remarkable achievements women were still reluctant to put up their hands and seek acknowledgement. “Despite the fact that we are seeing excellent levels of nominations for this year’s Awards, more than 86 per cent of women who have currently been nominated have been put forward by someone else,” Ms Kramer said. “During the past five years we’ve seen more nominations for the Awards but a decline in the number of women nominating themselves. The nomination data indicates the main reason women are being nominated this year is the passion they put into their work. Women are clearly inspiring others to take the time to nominate them.” Ms Kramer said in 2005 almost 36 per cent of women who entered the awards were self-nominees, in 2006 it was 37 per cent, but since then the number of women nominating themselves has slid gradually. In 2007 only 19 per cent were self-nominees, last year fewer than 17 per cent of women nominated themselves, and to date this year fewer than 14 per cent of the nominees put themselves forward. In 2009, there are five Award categories open to Australian businesswomen. Awards are offered in each category in every state and territory with the winners eligible for the national finals in November. To nominate yourself or other business women visit: www.telstrabusinesswomensawards.com or call 1800 817 536 during business hours. Nominations close 10 July, 2009. | |||
