News Pulse for May 16, 2018

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

Entrepreneurial millennials rate Australia low on startup ecosystem

Entrepreneurial millennials around the world do not rate Australian cities as being the right places to begin a startup with only Sydney sneaking into the top 20 of a major survey.

Not surprisingly, San Francisco and New York City were rated the top two cities for entrepreneurial millennials based on their business ecosystem while Kuala Lumpur was ranked third.

Open banking security is still an open question

Australia’s major banks have been keen to sow the idea that customer data is imperiled once it leaves their grasp, as a reason why the government and regulators should tread carefully on open banking.

The government announced last week that open banking would arrive in Australia progressively from July 2019.

Hidden benefits for small business in the 2018 budget

Small business owners could be forgiven for thinking that the 2018 federal budget did not hold much for them, apart from the extension to the deadline that they can claim a tax deduction for assets costing less than $20,000. A careful reading of the budget reveals other benefits and one new penalty for the small business sector.

In addition to small business owners receiving an income tax benefit from the extension of the deadline for claiming assets costing up to $20,000 from June 30, 2018, until June 30, 2019, and also benefiting from the new low and middle-income tax offset, there was a new policy that could result in some small business owners losing a tax deduction for payments to employees and contractors.

Can Microsoft & the Commonwealth Bank of Australia challenge Xero Limited?

Wiise, a new cloud-based accounting tech start up that is backed by the Commonwealth Bank of Australia (ASX: CBA) , US tech giant Microsoft Corporation (NASDAQ: MSFT) and the big four accounting firm KPMG will be launched in July this year, according to an article in the Australian Financial Review today.

Wiise’s platform will integrate banking features as well as Microsoft’s artificial intelligence, cyber security and data storage capabilities. A Wiise board member was quoted in the article saying that the platform would be “more appealing” than Xero Limited (ASX: XRO) and Myob Group Ltd (ASX: MYO) for companies that operate in more than one location, have complex supply chains and high transaction volumes.

MYOB and BPAY join forces to speed up small business payments

Running your own cafe, florist, butcher or boutique fashion store can be stressful enough without having to worry about being paid on-time. So to take the stress out of small business , MYOB and BPAY have today announced a partnership that will speed up your payments.

The collaboration means that MYOB’s customers will now be able to process BPAY payments from their customers and clients as part of the software company’s invoice payments service, which is also capable of processing credit card transactions.

MYOB Partners With Network Ten’s Shark Tank

In its fourth season, Shark Tank continues its format of having budding business owners and entrepreneurs pitch their ideas to the ‘sharks’, who have invested $21 million of their own money in businesses via the series to date.

Shark Tank star and Boost Juice founder Janine Allis (pictured above, second from the left) happens to be long-time supporter of MYOB, with the software being recommended within her business to the hundreds of small franchises that make up Boost Juice.

‘Substantial’ increase in minimum wage will see full-time earners face higher tax rate

Up to 200,000 of Australia’s lowest paid employees will be bumped into the middle income tax bracket and lose more than one-third of every extra dollar they earn if the Fair Work Commission grants even a fraction of the ACTU’s annual pay claim.

While workers’ pay packets would be squeezed by the bracket creep, business would face the full cost of the ACTU’s claim to lift the minimum wage by 7.2 per cent, or from $36,238 a year for full-time workers to $38,847. The ACTU argues the equivalent $50 a week pay rise would create up to 50,000 jobs.

Financials for Office 365 relaunches with backing from KPMG, Microsoft and Commonwealth Bank

Australian software startup Financials for Office 365 has relaunched with a new name and backing from KPMG Australia, Microsoft and Commonwealth Bank.

The company, which was acquired by KPMG in September last year, has changed its name to Wiise and will take on local cloud accounting firms Xero and MYOB with its own platform targeting SMEs looking for more “complex solutions” to run their businesses.

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