News Pulse for December 16, 2016

A daily download of SME, startup, fintech and tax news from around Australia.

Dick Smith: Sydney small businesses doomed to sell nothing but coffee unless Lucy Turnbull has a solution

Entrepreneur Dick Smith has called on Lucy Turnbull, head of the Greater Sydney Commission, to address the city’s rapidly growing population or face the consequences of fewer jobs and less prosperity in the region.

In an open letter published in national newspapers today, Smith tells Turnbull: “You are far better educated than the rest of us – so you must have a plan”. Smith argues the “perpetual growth” in Sydney supported by the country’s major political parties is unsustainable and is having a negative effect on house prices and employment.

Business sales can trigger concessional/non-concessional cap issues

Small business owners selling their business or business assets and using the proceeds to contribute to superannuation free of capital gains tax (CGT) need to be aware of the recent changes to concessional and non‑concessional caps, says Peter Hogan, SMSF Association Head of Technical.

Hogan says because there has not been any change to the rules surrounding the small business CGT cap, its potential impact on concessional and non-concessional caps has largely gone under the radar.

SMEs not buying recession talk: MYOB survey

Talk of a looming recession is being shrugged off by SME operators, according to the latest Business Monitor from accounting software provider MYOB.

The bi-annual survey of more than 1000 SME operators found that 26% expect the economy to improve over the next year, while a further 33% expect it to remain the same. The biggest optimists were Queensland operators, with 34% expecting an improvement, and operators whose businesses had grown revenue in 2016 (40%).

The startup ecosystem that powered Uber and Spotify will open three Australian campuses

Uber, Blippar, SuperCell and Spotify are an impressive set of alumni to name-drop. Now startup campus provider RocketSpace is opening up in Australia and is not afraid to show off its track record.

The company announced overnight that it would, in conjunction with Dexus Property Group, open startup campuses in Sydney, Melbourne and Brisbane in the new year.

Future of the $100 note up for grabs as government targets cash

The Turnbull government is to consider a ban on the $100 note and a crackdown on all but small cash payments as part of an assault on the cash economy to be unveiled in Monday’s mid-year budget update.

“There’s nothing wrong with cash, the issue is when people don’t declare it,” said Financial Services Minister Kelly O’Dwyer ahead of the announcement.

Here’s why more Australians are starting their own businesses

A new study released today from Xero has revealed the motivations driving Australians to quit their day jobs and start their own small business.

Interestingly, almost one in six (16 per cent) Australian respondents were spurred to start their own business after having difficulty finding full time employment due to barriers such as language, age, disability, and skills.

Why Australian governments should embrace the growing peer-to-peer economy

The rise of the sharing economy can save Australians more than $500 million on taxi bills, help them to put underused property and other assets to work, and increase employment and income for people on the fringe of the job market, according to a new Grattan Institute report.

Peer-to-peer pressure: policy for the sharing economy shows that the prize for getting this new online economy right is large and governments should not try to slow its growth in order to protect vested interests.

Start-ups need sea change

FROM mowing lawns for a living, Greg Ellis now heads one of the country’s fastest-growing technology companies.

A co-founder of payday lender Nimble, Mr Ellis says the company has thrived from its Gold Coast base.

Taxing week for Turnbull as ATO rejects third pay offer

Tax Office staff have resolutely rejected the federal government’s enterprise bargaining agreement (EBA) for a third time, this time by 71 per cent.

Union members at the 19,000-strong Australian Tax Office voted to knock back the EBA, compounding a hellish week for the ATO Australian Taxation Office and Prime Minister Malcolm TurnbullThe Hon. Malcolm Turnbull MP, Federal Member for Wentworth Prime Minister from 15.9.15, after the revenue agency’s internal and external IT systems crashed late on Sunday, prompting demands for compensation from accountants.

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