News Pulse for August 3, 2018

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

What does GST on import of low value imported goods mean for businesses?

Australia has recently introduced legislation to make supplies of low value goods purchased by consumers and imported into Australia subject to GST. Such supplies will therefore be treated in a similar manner to supplies made within Australia.

Domestic supplies made between retailers and customers are generally subject to GST. That is, the retailer is liable for the GST, but recovers it from the consumer (in the form of higher prices). Australian retailers allege that this created a competitive disadvantage – compared to supplies made by foreign suppliers that (up until now) did not fall with the scope of Australian GST, and placed significant pressure on the Government to “equalise” the playing field created by the differential GST treatment of their supplies (the Productivity Commission observed that factors other than GST were likely the real cause of the unlevel playing field).

Big Un’s overdue numbers a ‘brilliant case study’

Once upon a time, Big Un was a cashed up business raking in millions of dollars from upfront sales of its video service to small businesses.

But that was under the old accounting standards.

Reckon white labels itself to channel Institute of Public Accountants

Accounting software vendor Reckon has struck a deal with the Institute of Public Accountants (IPA) that it hopes will see it score thousands of new users.

The deal saw Reckon create a white-label version of its Reckon One cloud accounting software just for the IPA’s 35,000 members. Branded “IPA Books+”, the service will be paid for by IPA members’ fees rather than a direct relationship with Reckon.

How to drop your signature policy and come out on top

About 10 days before Super Saturday, Labor’s internal polling had the major parties neck and neck in Longman.

After that, the ALPAustralian Labor Party www.alp.org.au, as it was perfectly entitled to do, advertised heavily in the Brisbane area with a campaign experts estimate would have cost hundreds of thousands of dollars.

Morrison won’t rule out dumping tax plan

TREASURER Scott MorrisonThe Hon. Scott Morrison, Federal Member for Cook Treasurer from 21.9.15 has conceded the Government needs to manage the politics of its company tax cuts and has again refused to rule out dumping the plan if the Senate rejects it when Parliament resumes.

“It’s the right economic policy. The politics is a separate issue. Governments always have to manage politics,” Mr Morrison said on radio.

New banking Code of Practice levels SME playing field, but Ombudsman disappointed at $3 million loan threshold

A newly minted Code of Practice soon to be adhered to by some of Australia’s biggest banks has been heralded as a win for small business in the roil of the banking royal commission, but concerns have been raised over the implementation of a $3 million threshold for what’s considered to be a small business loan.

The Code of Practice was released yesterday by the Australian Banking Association (ABA) and is the first code to be approved by Australia’s business regulator, the Australian Securities and Investments Commission (ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au).

What your small business needs to know about the new banking code

A rewrite of the banking code, a document which outlines the standards which a number of Australian banks agree to adhere to, has been accepted by the Australian Investments and Securities Commission (ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au). The rewrite of the code was undertaken during 2016-17 and is due to come into effect on 1 July 2019.

While there is a raft of measures for consumers , for the first time small businesses were given special attention with their own dedicated section in the document. This comes not long after fintech business lenders made a similar move to improve transparency in the alternative lending space in February by developing their own code of conduct .

Ombudsman disappointed, welcomes ABA Banking Code of Practice

The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell,  has welcomed the approval by the Australian Securities and Investments Commission (ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au) of the Australian Banking Association’s (ABA) Banking Code of Practice.

“The new Code is in line with our Small Business Loans Inquiry , where we recommended the Code be revised, that it be approved by ASICAustralian Securities and Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. asic.gov.au and include a dedicated section on small business written in plain language,” she said.nnHowever, the ombudsman is “disappointed” the cap for small business loans is still set at a total loan facility of $3 million.

Morrison to fintechs: ‘Don’t stuff it up’

Treasurer Scott MorrisonThe Hon. Scott Morrison, Federal Member for Cook Treasurer from 21.9.15 has told leaders of the fintech industry he’s counting on them “not to stuff up” the implementation of open banking because he wants the government’s new consumer data right to be a driver of competition and productivity gains across the economy.

With the major banks lifting technology investment to fend off disruptive threats, Mr Morrison said he’s relying on start-ups to use his open banking and comprehensive credit reporting policies to increase pressure on the incumbents.

Tips, comments or suggestions? Let me know in the comments, send me an email or tweet me @simeonduncan.

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