A daily download of SME, startup, fintech and tax news from around Australia.
Businesses in Australia get to save billions of dollars in interest on loans per year. Big businesses are enjoying an annual savings of $27.6 billion, which is about three times the savings of smaller firms.
Small businesses are notably reaping the benefits of interest rate cuts as they are now paying $9 billion less compared to the same time in 2011.That’s according to Australian Bankers’ Association’s analysis of Reserve Bank data. Small business having to shoulder less interest on their loans will help push economic growth, generate new jobs and tackle unemployment in Australia.
Australia’s corporate watchdog has signed off on a new era for investment in emerging start-ups and small businesses by issuing retail equity crowd-funding licences.
The Australian Securities and Investments Commission issued the first retail equity crowd-funding licences on Thursday under laws passed last year.
The latest data from the RBAReserve Bank of Australia www.rba.gov.au has revealed the vast savings currently enjoyed by businesses across Australia as interest rates remain at a record-breaking low.
According to the research, small businesses are now paying $9bn less in interest on current loans every year compared to the same time in 2011. Further, the average rates paid on small business loans is now at the lowest level since RBAReserve Bank of Australia www.rba.gov.au data first commenced in 1993.
Start-ups and small businesses finally have the ability to raise money from the general public in exchange for a stake in the company after the regulator approved the first batch of equity crowdfunding platforms.
The Australian Securities and Investments Commission granted licences to seven platforms on Thursday: Big Start, Billfolda, Birchal Financial Services, Equitise, Global Funding Partners, IQX Investment Services and On-Market Bookbuilds.
The Institute of Public Accountants (IPA) has called for the Federal Government to improve the financial outlook of SMEs by introducing a loan guarantee scheme and legislating maximum payment times for business-to-business transactions.
In its 2018 pre-Budget submission , the IPA – a professional accounting body representing 35,000 accountants, business advisers, academics and students – made recommendations to assist small businesses and SMEs, noting that three quarters of its members either work in or service these sectors.
The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, today released exposure draft legislation and explanatory material for public consultation that will authorise the Australian Taxation Office (ATO Australian Taxation Office) to disclose business tax debts to credit reporting bureaus where the businesses have not effectively engaged with the ATO Australian Taxation Office to manage their debt.
The draft legislation requires the ATO Australian Taxation Office to consult with the Inspector General of Taxation before tax debt amounts are reported to credit reporting bureaus.
The Coalition Government welcomes ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au’s ground-breaking issuance of the first batch of licences allowing seven intermediaries to help small and innovative companies to raise funds from a crowd of investors, following commencement of the Government’s equity crowdfunding framework in September 2017.
This framework, which was a landmark reform of the Turnbull Government, has removed regulatory barriers enabling Australian entrepreneurs to obtain the capital they need to turn good ideas into commercial successes. It will help Australia be a country of new innovative businesses, which is good for jobs and good for consumers.