A daily download of SME, startup, fintech and tax news from around Australia.
“Selfish and short-sighted”: Damming ombudsman report shows big business still lax on SME payment terms
Some of Australia’s largest businesses have been reluctant to disclose how quickly they’re paying SME suppliers, despite promising to fulfil invoices within fewer than 30 days.
A new report into late payment times released by the Australian Small and Family Enterprise Ombudsman (ASBFEO) today has found while payment times have declined in recent years, it still takes 36.7 days on average for small businesses to get paid by big firms.
A few days before the Morrison government delivered its innovation crippling budget, news that would benefit startups was brewing across the Tasman.
Just before Australia took a knife to its research and development (R&D) tax incentive spend, New Zealand put in place a policy to raise its R&D spend to 2 per cent of GDP in the next 10 years.
A number of Australia’s best known companies including Wesfarmers and David Jones are refusing to publicly confirm to the small business ombudsman how long they take to pay suppliers, with some saying it could harm their competitive advantage.
Small Business and Family Enterprise Ombudsman Kate Carnell said the excuses by companies for not wanting to have their supplier terms published have verged on “spurious” and the reluctance was a “significant concern”.
Sometimes less is more.
The temptation for a government is to feel that they need to announce a whole series of new tax measures every year. But rarely is this the best way to develop a strong and efficient tax system.
Thankfully the 2019-20 federal budget hasn’t gone down this path. Rather, the focus has been on targeting specific areas of tax avoidance, in particular through funding the ATO Australian Taxation Office and other regulators.
Tips, comments or suggestions? Let me know in the comments, send me an email or tweet me @simeonduncan.