Pulse Alert – News Pulse for March 21, 2019

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

KKR goes ‘best and final’ at MYOB

Private equity bigwig KKR has not intention of bidding against itself at MYOB.

It is understood the firm sent a letter to MYOB’s board on Tuesday, declaring its $3.40 a share bid best and final in the absence of a competing offer.

Better wages or conditions: can we have both?

A colleague complained about low wages growth. Like many, his pay has almost flat-lined for years after inflation, even though his role, output and stress have increased.

He never mentioned gains in workplace conditions during this time. He can now take a day off each year to support a charity; access extra parental leave; use carers leave when a family member is sick; benefit from generous study leave; or take extra time off.

Ombudsman welcomes job system overhaul to help small businesses employ

Australian Small Business and Family Enterprise Ombudsman, Kate Carnell today welcomed the Coalition Government’s commitment to transform Australia’s employment services model to deliver better outcomes for job seekers and employers.

“Small businesses find the current system difficult to use and, as a result, rarely use jobactive providers to fill vacant positions,” Ms Carnell said.

Small business change rejected

A royal commission recommendation to extend protection for small business borrowers is all but dead in the water after the powerful Council of Financial Regulators warned that adopting the measure could further constrain credit to small and medium enterprises amid a sliding housing market.

In the minutes from its latest quarterly meeting, the CFR, which takes in senior members from Treasury, the Reserve Bank, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission, noted it “supported maintaining the current borrowing threshold” to define small business out of fear that adopting financial services royal commissioner Kenneth Hayne’s recommendation could worsen “the tightening in credit conditions that has taken place”.

Downturn crunches SME loans, top regulators warn

Financial regulators are concerned that tighter mortgage lending standards and falling house prices are further crimping the ability of small businesses to access credit.

“Members observed that new lending to small businesses has slowed over the past year,” a statement released Tuesday by the Council of Financial Regulators statement read.

jobactive CEO Forum, Melbourne 20 March 2019 | Ministers’ Media Centre, Australian Government

It is critical that our employment services system keeps pace with the changing world in which we live and connects unemployed people with job opportunities. Like all of you, I want to ensure that we have an effective, responsive service in place to help Australians who need a hand up to get a job.

So today I want to announce a major change to the model that the Government has in place to help people find work.

KKR confirms MYOB bid is ‘best and final’

Private equity giant KKR says its $3.40 per share bid for accounting software firm MYOB is its “best and final” offer, as the board faces increased pressure from shareholders to reconsider its support of the proposal.

In an announcement to the market on Wednesday, MYOB shared a letter from KKR addressed to chairman Justin Milne to state the bid, which valued MYOB at $2 billion, was its “best and final” offer, but the company retained its rights to increase the bid if a superior one was lobbed.

Small business to benefit from more skilled job applicants under digital overhaul of Jobactive system 

Small businesses are set to be better placed to field applicants from the government’s Jobactive service after changes announced today by Minister for Jobs and Industrial Relations Kelly O’Dwyer.

The sweeping changes to the service, which is designed to help struggling job seekers find work, will see it transform into a digital platform, making it easier for unemployed Australians to find and apply for jobs.

Government response to digital economy consultation | The Hon Josh Frydenberg MP

The Coalition Government is committed to strengthening our tax rules, ensuring Australia’s tax integrity laws are among the strongest in the world and delivering a tax system that is internationally competitive.

The growth of the digitalised economy in recent years has prompted international debate about whether the existing international corporate tax framework remains fit for purpose.

Fintech Australia Moves HQ To Melbourne

Victoria’s fast-growing fintech sector has received a major boost with the announcement that the industry peak body, Fintech Australia, will relocate its headquarters from Sydney to Melbourne.

Minister for Jobs, Innovation and Trade Martin Pakula today welcomed the move, which will cement Melbourne’s reputation as the home for Australia’s digital technology sector.

MYOB bid won’t rise: KKR

Kohlberg Kravis Roberts is sticking to its guns in its pursuit of MYOB, with the private equity firm saying it won’t raise its $3.40-per-share takeover offer.

MYOB told shareholders yesterday KKR had made its intentions clear in a letter to the takeover target’s chairman, Justin Milne. “KKR BidCo has today informed the directors of MYOB that the all-cash consideration of $3.40 per share under the SIA (Scheme Implementation Agreement) is its best and final offer, subject to KKR BidCo retaining its rights under clause 9.5 of the SIA,” the letter said.

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