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NEWS
SOS
THE Australian Small Business and Family Enterprise Ombudsman’s office has been inundated by survey responses from distressed travel agents who say their businesses have been decimated by the COVID crisis.
Over 1,000 travel agents have completed an online survey since it was launched last week.
Over 1,000 travel agents have completed an online survey since it was launched last week.
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Ombudsman Kate Carnell says “We’ve had an overwhelming response from mum-and-dad travel agents who are in a world of pain.”
Of the hundreds of travel agents, 98% say they have seen their revenue plunge by more than 75% since COVID restrictions were introduced in March. More than half said their revenue has plummeted by over 100% meaning they have been paying more out in refunds, including previously made revenue, than they are selling in new business. Travel agents are working around the clock to negotiate refunds from travel companies and airlines for their customers. 56% of these small businesses have said they would have already closed down if not for their commitment to ensure their customers were refunded for holidays they could no longer take. Deposits paid by customers are passed on to travel providers (cruise ship or tour companies for instance) minus the commission for the travel agent. The challenge for the travel agent is to get back the deposit, particularly from offshore companies that are also under enormous financial pressure. |
Photo: Sasha Freemind
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If these small business owners were to walk away without facilitating customer refunds, there would understandably be a public outcry. However, these travel agents’ businesses are losing money by staying open and working to do the right thing for their customers.
Ms Carnell said: “At this early stage, we are still consulting with the industry regarding what assistance is required, but it is clear that a targeted response will be needed.
“With international travel restrictions likely to remain in place for the foreseeable future, this is an incredibly difficult situation for small businesses in the tourism sector, but my office will be working towards making economically sensible recommendations to the government that will help travel agents in the near term.”
Ms Carnell said: “At this early stage, we are still consulting with the industry regarding what assistance is required, but it is clear that a targeted response will be needed.
“With international travel restrictions likely to remain in place for the foreseeable future, this is an incredibly difficult situation for small businesses in the tourism sector, but my office will be working towards making economically sensible recommendations to the government that will help travel agents in the near term.”
Stamped with success
Envelope
AUSTRALIA POST is celebrating the 100th running of the W.S. Cox Plate with the release of a commemorative stamp featuring the 9ct solid Yellow Gold Plate Trophy.
Named after William Samuel (W.S.) Cox (1831–1895), a pioneer of thoroughbred racing in Australia who opened the Moonee Valley Racing Club in suburban Melbourne in 1883, the undisputed Weight-For-Age Championship of Australasia has an honour roll that is the envy of the racing world.
Australia Post Philatelic Manager Michael Zsolt said Australia Post was happy to mark the historic occasion with the special stamp issue.
“Each of the 99 runnings of the W.S. Cox Plate has delivered unique and exciting moments in the Moonee Valley Racing Club’s history, and in Australian racing history,” he said.
“We celebrated Winx with her own stamp when she won her record-breaking fourth W.S. Cox Plate, and we are so pleased to now be honouring the legendary race itself.”
Named after William Samuel (W.S.) Cox (1831–1895), a pioneer of thoroughbred racing in Australia who opened the Moonee Valley Racing Club in suburban Melbourne in 1883, the undisputed Weight-For-Age Championship of Australasia has an honour roll that is the envy of the racing world.
Australia Post Philatelic Manager Michael Zsolt said Australia Post was happy to mark the historic occasion with the special stamp issue.
“Each of the 99 runnings of the W.S. Cox Plate has delivered unique and exciting moments in the Moonee Valley Racing Club’s history, and in Australian racing history,” he said.
“We celebrated Winx with her own stamp when she won her record-breaking fourth W.S. Cox Plate, and we are so pleased to now be honouring the legendary race itself.”
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Moonee Valley Racing Club Chairman Don Casboult said the specially commissioned stamp was a fitting way to celebrate the milestone.
“We’re thrilled that Australia Post has issued this commemorative stamp to celebrate The Race Where Legends Are Made and it is a wonderful way to celebrate the 100th running of the W.S. Cox Plate.” The inaugural W.S. Cox Plate was run in 1922 with English horse Violoncello taking out the honours and the race quickly grew in prominence. In 1946, the race was run in two divisions, resulting in the event being recorded in the official record books twice for that year. In addition to the stamp released today, Australia Post will also be releasing two products after the running of the 100th W.S. Cox Plate: a Medallion Cover featuring the winning horse and a Celebration Race Book that will include statistics of all 100 races and stamp pages of the Cox Plate Stamp. The commemorative stamps will be available at participating Post Offices, via mail order on 1800 331 794, and online while stocks last, and the Medallion Cover and Celebration Race Book will be available from December 8 via the same channels. |
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Getting water to the world
Zambia - queuing to use handwashing stations for people with disability
This week we had Global Handwashing Day and the current COVID-19 pandemic has highlighted the critical role hand hygiene plays in disease transmission.
Rosie Wheen, CE, WaterAid Australia, said: “We’ve seen handwashing thrown into the spotlight as one of the key ways to help slow the spread of COVID-19. However, billions of people worldwide can’t do this, as they simply do not have access to soap or water. That’s why it’s so inspiring to see how people around the world have created access to handwashing in their communities, and why WaterAid’s work to bring clean water, decent toilets and good hygiene is as important as it has always been.”
Rosie Wheen, CE, WaterAid Australia, said: “We’ve seen handwashing thrown into the spotlight as one of the key ways to help slow the spread of COVID-19. However, billions of people worldwide can’t do this, as they simply do not have access to soap or water. That’s why it’s so inspiring to see how people around the world have created access to handwashing in their communities, and why WaterAid’s work to bring clean water, decent toilets and good hygiene is as important as it has always been.”
India
India
WaterAid India knew they had to get innovative to deliver water to those who needed it most. Enter, mobile handwashing stations attached to rickshaws! This system allows water and soap to reach more people across India with lifesaving handwashing facilities. The mobile handwashing units require just a small pipe, two end caps and a water tap. The pipe holds the water and has a water tap on the bottom, with liquid handwash secured by tape. The unit can hold almost 5 litres of water, sufficient for 12-15 washes!
Myanmar
A little friendly competition is always sure to get people inspired! That’s why WaterAid Myanmar organised a competition to build Tippy-Taps in three villages, with the winners receiving communal funds for their village to further develop water, sanitation and hygiene projects. Tippy-Taps are a simple device for handwashing with running water, where a container of water is tipped with a stick and tied by rope. As soap is the only thing touched by hands, the device is very hygienic. In each village, over 300 households built their own Tippy-Taps, recognising the importance of hygiene in the context of COVID-19.
Cambodia
WaterAid Cambodia took their communications on the road, literally! The team drove through rural villages in the back of a truck, sharing COVID-19 handwashing messages through a loudspeaker. Rain or shine, the team were out there ensuring everyone was aware and preparing for the virus.
WaterAid India knew they had to get innovative to deliver water to those who needed it most. Enter, mobile handwashing stations attached to rickshaws! This system allows water and soap to reach more people across India with lifesaving handwashing facilities. The mobile handwashing units require just a small pipe, two end caps and a water tap. The pipe holds the water and has a water tap on the bottom, with liquid handwash secured by tape. The unit can hold almost 5 litres of water, sufficient for 12-15 washes!
Myanmar
A little friendly competition is always sure to get people inspired! That’s why WaterAid Myanmar organised a competition to build Tippy-Taps in three villages, with the winners receiving communal funds for their village to further develop water, sanitation and hygiene projects. Tippy-Taps are a simple device for handwashing with running water, where a container of water is tipped with a stick and tied by rope. As soap is the only thing touched by hands, the device is very hygienic. In each village, over 300 households built their own Tippy-Taps, recognising the importance of hygiene in the context of COVID-19.
Cambodia
WaterAid Cambodia took their communications on the road, literally! The team drove through rural villages in the back of a truck, sharing COVID-19 handwashing messages through a loudspeaker. Rain or shine, the team were out there ensuring everyone was aware and preparing for the virus.
Papua New Guinea
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Zambia
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Timor Leste
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Sierra Leone
Zambia
The WaterAid Zambia team launched one of the first inclusive universal handwashing stations to include access for people living with a disability, particularly wheelchair users and those unable to use the foot-operated handwashing stations. By removing the foot pump and creating a wider space to accommodate a wheelchair, the universal handwashing station allows everyone access to wash their hands.
Not only this, but the team also used drones to fly over urban areas delivering COVID-19 hygiene messages, using the drones to write messages in the sky!
Sierra Leone
Using traditional methods of communications, WaterAid Sierra Leone deployed town criers to rural areas to deliver hygiene messages and answer questions in local languages. The town criers were trained on hand hygiene and COVID-19 hygiene information by WaterAid, and went village to village explaining hygiene messages through the loudspeaker in order to reach more people at once.
Papua New Guinea
It is not only access to water needed to wash your hands, soap is a crucial element too. That is why WaterAid Papua New Guinea created soap making workshops, where they can teach communities how to make soap out of locally available products, like coconut oil mixed with caustic soda!
The WaterAid Zambia team launched one of the first inclusive universal handwashing stations to include access for people living with a disability, particularly wheelchair users and those unable to use the foot-operated handwashing stations. By removing the foot pump and creating a wider space to accommodate a wheelchair, the universal handwashing station allows everyone access to wash their hands.
Not only this, but the team also used drones to fly over urban areas delivering COVID-19 hygiene messages, using the drones to write messages in the sky!
Sierra Leone
Using traditional methods of communications, WaterAid Sierra Leone deployed town criers to rural areas to deliver hygiene messages and answer questions in local languages. The town criers were trained on hand hygiene and COVID-19 hygiene information by WaterAid, and went village to village explaining hygiene messages through the loudspeaker in order to reach more people at once.
Papua New Guinea
It is not only access to water needed to wash your hands, soap is a crucial element too. That is why WaterAid Papua New Guinea created soap making workshops, where they can teach communities how to make soap out of locally available products, like coconut oil mixed with caustic soda!
A rebuild for businesses
This year's Federal Budget hopefully delivers much-needed support for the survival and recovery of Victorian businesses.
Several measures are closely aligned with the Victorian Chamber’s advocacy, including:
Several measures are closely aligned with the Victorian Chamber’s advocacy, including:
- A 50 per cent subsidy for businesses employing apprentices and trainees
- New JobMaker hiring credit available to employers who hire 16-35 year-olds on JobSeeker
- $1.1 billion for Victorian infrastructure projects, including important regional road and rail upgrades
- The introduction of temporary loss-carry back provisions which means businesses can claim refunds for tax paid on pre-COVID-19 profits
- Temporary full expensing to allow 99 per cent of businesses to write off the full value of assets they purchase
- An $800 million package to support the transition to digital technologies
- A $1.5 billion Modern Manufacturing Strategy to provide co-funding for large manufacturing projects to help businesses in six National Manufacturing Priority areas to scale-up, collaborate and commercialise
- $1 billion for new research funding for our universities
- $317 million for Australian exporters to continue to access global supply chains
- $550 million to support regional Australia, including $200 million for the Building Better Regions Fund and $100 million for regional recovery partnerships targeted at areas including Gippsland hit hard by drought, bushfires and COVID-19 restrictions.
- Exempting employer-provided retraining activities from fringe benefits tax to encourage reskilling
- Temporary changes to insolvency rules to help businesses stay afloat
- Reinstating $2 billion to the Research and Development Tax Incentive Scheme
- Income tax cuts for more than 11 million low and middle income earners.
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The Victorian Chamber of Commerce and Industry Chief Executive, Paul Guerra, said "This is a budget that will reward local businesses for their grit and determination, the ambitious entrepreneurs who have steadfastly stayed the course, and who are all ready to resume when permitted to grow Victorian jobs once again.
“The Victorian Chamber highlighted three key objectives that we wanted to see in the Budget: protecting and growing local business, cementing and improving our global reputation and the next big infrastructure build. We are pleased the Government has taken up our recommendations. “This historic budget will create jobs, stimulate sectors such as manufacturing, tourism, renewable energy and technology while investing in rail and roads to improve our liveability. “Incentivising businesses to take on apprentices and trainees has never been more important as the Victorian Chamber has seen a 45 per cent decline in commencements since March; a trend that was likely to continue without intervention. “It’s great to see significant investment in regional Victoria as our tourism areas in particular recover from a horror year of drought, bushfires and COVID-19 restrictions which have effectively cut them off from the metropolitan Melbourne visitation dollar, as well as interstate and overseas markets. “The strong focus on encouraging a business-led recovery in the Federal Budget must be mirrored in next month’s State Budget, which provides a timely opportunity to lower business costs, cut red tape, encourage investment and innovation and generate jobs.” |
Be careful on the road
Photo: Takahiro Taguchi
AS coronavirus numbers continue to drop and Melburnians prepare for Stage Four lockdown measures to be lifted, motorists are being urged to use extra caution on the State’s roads.
Maurice Blackburn Lawyers road injuries Special Counsel Voula Lambropoulos said many drivers would be out of practise after not driving far from home for several months, which could potentially put themselves and other road users at risk.
“We’ve been in lockdown for such a long time, so we all need to be mindful as restrictions start to ease and we get back behind the wheel that our driving skills are probably going to be a little bit rusty, especially in different weather conditions and driving longer distances,” Ms Lambropoulos said.
“We can also expect to be sharing the roads with increased traffic compared to what we’ve been used to so it’s important that all road users take extra care when sharing the road with others.
“Tragically, more than 160 lives have already been lost on Victorian roads this year. But it’s important to remember that for every person killed on our roads, another 30 people are seriously injured, so we all need to slow down, obey road rules and avoid taking risks so that no more lives are lost or changed forever.”
Maurice Blackburn Lawyers road injuries Special Counsel Voula Lambropoulos said many drivers would be out of practise after not driving far from home for several months, which could potentially put themselves and other road users at risk.
“We’ve been in lockdown for such a long time, so we all need to be mindful as restrictions start to ease and we get back behind the wheel that our driving skills are probably going to be a little bit rusty, especially in different weather conditions and driving longer distances,” Ms Lambropoulos said.
“We can also expect to be sharing the roads with increased traffic compared to what we’ve been used to so it’s important that all road users take extra care when sharing the road with others.
“Tragically, more than 160 lives have already been lost on Victorian roads this year. But it’s important to remember that for every person killed on our roads, another 30 people are seriously injured, so we all need to slow down, obey road rules and avoid taking risks so that no more lives are lost or changed forever.”
Caravans in the sky
Photo: Neil Kelly
Photo: Maël Balland
THE Victorian caravan and camping industry contributes $2.3 billion to the Victorian economy. Or it used to!
This year we can go to the Victorian Caravan and Camping show from the comfort of our loungeroom. Here we can compare and purchase products from over 150 exhibitors yet it’s free and can visit 24 hours a day.
Even with the challenges Victorian’s and Australians have faced in recent times, first bushfires and then the Covid-19 pandemic, Australian’s still spent 56.8 million nights caravanning and camping. With both the industry and consumers suffering from lockdowns, travel restrictions and future uncertainty this show, organised by the Caravan Industry Victoria, will provide a positive opportunity for planning a way forward and reclaiming what is a traditional Australian pastime.
Over the past six months, it's not only been an industry; specifically, Victoria which accounts for over 90% of all recreational vehicle manufacturing in Australia that has suffered but as shown in studies completed after the first month of the Covid-19 pandemic mental health problems were at least twice as prevalent as in non-pandemic circumstances. This was due to people’s lives being impacted by issues such as study stress, loneliness, employment uncertainty, finances and health concerns which are all still relevant today.
Rob Lucas, CEO Caravan Industry Victoria, stated, ‘This virtual show is a way that the Association can assist both the industry and many people by providing a safe online opportunity that allows consumers to engage with exhibitors in real time through online chats, observe demonstrations, obtain quotes and get excited about planning their next caravan and camping holiday.’
This year we can go to the Victorian Caravan and Camping show from the comfort of our loungeroom. Here we can compare and purchase products from over 150 exhibitors yet it’s free and can visit 24 hours a day.
Even with the challenges Victorian’s and Australians have faced in recent times, first bushfires and then the Covid-19 pandemic, Australian’s still spent 56.8 million nights caravanning and camping. With both the industry and consumers suffering from lockdowns, travel restrictions and future uncertainty this show, organised by the Caravan Industry Victoria, will provide a positive opportunity for planning a way forward and reclaiming what is a traditional Australian pastime.
Over the past six months, it's not only been an industry; specifically, Victoria which accounts for over 90% of all recreational vehicle manufacturing in Australia that has suffered but as shown in studies completed after the first month of the Covid-19 pandemic mental health problems were at least twice as prevalent as in non-pandemic circumstances. This was due to people’s lives being impacted by issues such as study stress, loneliness, employment uncertainty, finances and health concerns which are all still relevant today.
Rob Lucas, CEO Caravan Industry Victoria, stated, ‘This virtual show is a way that the Association can assist both the industry and many people by providing a safe online opportunity that allows consumers to engage with exhibitors in real time through online chats, observe demonstrations, obtain quotes and get excited about planning their next caravan and camping holiday.’
For more information, to see who’s exhibiting, what’s on, list of prizes and to register visit The Victorian Caravan & Camping Virtual Show
open from 7am Wednesday, September 30 until 11.50pm Sunday, October 4 (AEST)
open from 7am Wednesday, September 30 until 11.50pm Sunday, October 4 (AEST)
Pinning a Cox Plate
THE Moonee Valley Racing Club (MVRC) is delighted to announce that the Club will again partner with Ronald McDonald House Charities Victoria & Tasmania (RMHC Vic & Tas) in raising much-needed funds through the sale of our 2020 Cox Plate Carnival Charity Pins.
The Pins will be available to purchase online for $5 from tomorrow (Sept 27), all the way through to the Ladbrokes Cox Plate Carnival on October 23-24 or until sold out.
The Cox Plate Charity Pin this year will reflect the special 100th Cox Plate Trophy, which for the 100th running of the legendary race is a 9ct Solid Yellow Gold Plate. The Pin will become a collector’s item in time given the significance of this year’s race and even more so given the unlikelihood of crowds trackside.
“This year, more than ever, we are asking people to dig deep to help raise as much as we possibly can in what is a tough time for many Victorians, especially those who are caring for a seriously ill child at this time”, said Michael Browell, MVRC CEO.
All proceeds from the sale of the Pins will be going to RMHC Vic & Tas, and the MVRC will also be launching other fundraising initiatives throughout the Ladbrokes Cox Plate Carnival to help us reach our target of $35,000. The MVRC & RMHC are also excited to announce Jacqueline Felgate as the 2020 Cox Plate Charity Ambassador, allowing the Club to raise as much awareness as possible for this fantastic cause.
RMHC Vic & Tas works to enhance the quality of life for families with sick children by providing a home-away-from-home that is welcoming, caring, and supportive. There are four Ronald McDonald Houses across Victoria & Tasmania, located at Monash, North Fitzroy, Parkville, and Hobart. The Houses are open 24 hours a day, seven days a week, 365 days a year, and accommodate up to 102 families every night. Their goal is to ensure that we never have to turn away eligible families who need their services.
Click here to view the Cox Plate Carnival Charity Pin and to purchase.
The Pins will be available to purchase online for $5 from tomorrow (Sept 27), all the way through to the Ladbrokes Cox Plate Carnival on October 23-24 or until sold out.
The Cox Plate Charity Pin this year will reflect the special 100th Cox Plate Trophy, which for the 100th running of the legendary race is a 9ct Solid Yellow Gold Plate. The Pin will become a collector’s item in time given the significance of this year’s race and even more so given the unlikelihood of crowds trackside.
“This year, more than ever, we are asking people to dig deep to help raise as much as we possibly can in what is a tough time for many Victorians, especially those who are caring for a seriously ill child at this time”, said Michael Browell, MVRC CEO.
All proceeds from the sale of the Pins will be going to RMHC Vic & Tas, and the MVRC will also be launching other fundraising initiatives throughout the Ladbrokes Cox Plate Carnival to help us reach our target of $35,000. The MVRC & RMHC are also excited to announce Jacqueline Felgate as the 2020 Cox Plate Charity Ambassador, allowing the Club to raise as much awareness as possible for this fantastic cause.
RMHC Vic & Tas works to enhance the quality of life for families with sick children by providing a home-away-from-home that is welcoming, caring, and supportive. There are four Ronald McDonald Houses across Victoria & Tasmania, located at Monash, North Fitzroy, Parkville, and Hobart. The Houses are open 24 hours a day, seven days a week, 365 days a year, and accommodate up to 102 families every night. Their goal is to ensure that we never have to turn away eligible families who need their services.
Click here to view the Cox Plate Carnival Charity Pin and to purchase.
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Sparing insolvency pain
September 24, 2020 
THE Federal Government has thrown struggling small businesses a lifeline today, announcing plans to overhaul insolvency rules.
The new rules making it easier for small businesses to restructure or wind up, are in line with the recommendations outlined in the Insolvency Practices Inquiry final report handed down by the Ombudsman in July. More ... |
Let's get digital
September 23, 2020 
Under a three-year plan, NBN Co has pledged to build fibre optic cable to business premises free of charge and make business-grade fibre services more affordable.
“1.4 million businesses across Australia are now eligible to have fibre installed to their premises at no cost,” Ms Carnell says. More ... |
The 5km "Friend Zone"
An example 5km radius from the centre of Puckle St., Moonee Ponds
WITH Melbourne residents prevented from going further than 5km from home during lockdown, an interactive map developed by Monash University researchers is making it easier to see a friend outdoors.
The tool, called Melbourne Friend Zone, allows users to plug in their address along with their friend's location to see if the 5km radius between each location overlaps. In addition to clearly identifying your 5km range, the map also pin points nearby barbecue facilities and playgrounds to make the most of your two hours outside.
Developed by a team of researchers from the Faculty of Information Technology (IT), the intention was to build an interactive map that allowed Melburnians to stay connected with an easy-to-use online tool.
Since its launch less than a week ago, the platform has already had 1,900 unique users and is expected to grow with warm weather forecast for the weekend.
There are also plans to further enhance the map by enabling shareable links between users and creating a more friendly mobile phone interface.
The 1.5 metre social distancing guidelines and mandatory masks are still applied with all outdoor gatherings.
To see how Melbourne Friend Zone works, visit: Melbourne Friend Zone.
The tool, called Melbourne Friend Zone, allows users to plug in their address along with their friend's location to see if the 5km radius between each location overlaps. In addition to clearly identifying your 5km range, the map also pin points nearby barbecue facilities and playgrounds to make the most of your two hours outside.
Developed by a team of researchers from the Faculty of Information Technology (IT), the intention was to build an interactive map that allowed Melburnians to stay connected with an easy-to-use online tool.
Since its launch less than a week ago, the platform has already had 1,900 unique users and is expected to grow with warm weather forecast for the weekend.
There are also plans to further enhance the map by enabling shareable links between users and creating a more friendly mobile phone interface.
The 1.5 metre social distancing guidelines and mandatory masks are still applied with all outdoor gatherings.
To see how Melbourne Friend Zone works, visit: Melbourne Friend Zone.
Pubs ‘bleeding with debt’
VICTORIAN hotels and pubs will ‘bleed further with debt and face going over the cliff’ under the recent extension of the Stage 4 COVID-19 virus restrictions.
The Australian Hotels Association (Vic) President David Canny said Victoria’s pub industry is bitterly disappointed with further delays to re-opening, placing publicans on a ‘debt cliff’ which will see many not meeting Premier Daniel Andrews’ desire for a ‘family Christmas’.
Mr Canny said moving the thresholds again placed further anxiety on hotel and pubs owners and their employees. AHA (Vic) has 1450 members employing more than 52,000 people and contributing $4.2 billion to the State’s Gross State Product.
“These decisions are going to change the whole hospitality landscape from which it may never recover,” he said. “We are on the verge of becoming a ‘welfare state’ if our members are any indication of what the lockdown restrictions are having on us.
“Closing down the industry is the easiest decision the government can make. The hardest is for our people to deal with mounting debt, employee welfare and mental health and not being the ‘community hub’ for many of our patrons and the broader community.
“Our country pubs and those in other States have proven the hospitality industry can comply with restrictions and minimise cases. We believe we can achieve this here.”
Mr. Canny said it was now time for the Victorian Government to look to the expertise from New South Wales and Queensland who have a proven ability to manage the risks related to hospitality businesses and the broader economy in order to re-emerge from COVID-19 restrictions.
He said Victorian pubs had proven they can manage the COVID-19 risks by implementing plans for social distancing, superior hygiene practices, digital contact tracing and robust measures for patron management.
“We are frustrated with the lack of consideration for business interests and the potential for massive job losses for the staff employed in the industry,” he said.
“We have ongoing mounting fixed costs - electricity bills, insurance, Council rates and lease of equipment of which there is no relief. Each pub has a limit of just how much debt it can take before decisions are made to close the business for good. This is the cliff we are now facing.
“Local pubs are on the debt cliff and will never recover if they cannot re-open soon. We could lose the iconic corner pub because of the debt the Victorian Government restrictions have put on them.
“We are on the edge of that debt cliff and unless Government commences our re-opening then it is over we go.”
The Australian Hotels Association (Vic) President David Canny said Victoria’s pub industry is bitterly disappointed with further delays to re-opening, placing publicans on a ‘debt cliff’ which will see many not meeting Premier Daniel Andrews’ desire for a ‘family Christmas’.
Mr Canny said moving the thresholds again placed further anxiety on hotel and pubs owners and their employees. AHA (Vic) has 1450 members employing more than 52,000 people and contributing $4.2 billion to the State’s Gross State Product.
“These decisions are going to change the whole hospitality landscape from which it may never recover,” he said. “We are on the verge of becoming a ‘welfare state’ if our members are any indication of what the lockdown restrictions are having on us.
“Closing down the industry is the easiest decision the government can make. The hardest is for our people to deal with mounting debt, employee welfare and mental health and not being the ‘community hub’ for many of our patrons and the broader community.
“Our country pubs and those in other States have proven the hospitality industry can comply with restrictions and minimise cases. We believe we can achieve this here.”
Mr. Canny said it was now time for the Victorian Government to look to the expertise from New South Wales and Queensland who have a proven ability to manage the risks related to hospitality businesses and the broader economy in order to re-emerge from COVID-19 restrictions.
He said Victorian pubs had proven they can manage the COVID-19 risks by implementing plans for social distancing, superior hygiene practices, digital contact tracing and robust measures for patron management.
“We are frustrated with the lack of consideration for business interests and the potential for massive job losses for the staff employed in the industry,” he said.
“We have ongoing mounting fixed costs - electricity bills, insurance, Council rates and lease of equipment of which there is no relief. Each pub has a limit of just how much debt it can take before decisions are made to close the business for good. This is the cliff we are now facing.
“Local pubs are on the debt cliff and will never recover if they cannot re-open soon. We could lose the iconic corner pub because of the debt the Victorian Government restrictions have put on them.
“We are on the edge of that debt cliff and unless Government commences our re-opening then it is over we go.”
A relief for small businesses
Extended insolvency protections
Photo: Frank Busch
THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed the Federal Government’s extension of temporary insolvency and bankruptcy protections, to support struggling small businesses impacted by the COVID crisis.
Regulations reducing the threat of creditors taking action against small businesses impacted by trading restrictions have now been extended to 31 December 2020.
The changes also extend the temporary relief for directors from any personal liability for trading while insolvent.
“These necessary measures give otherwise viable small businesses more time to recover, preventing a wave of unnecessary insolvencies,” Ms Carnell says.
“While we support this temporary relief for financially distressed businesses, there will also be a number of zombie businesses kept artificially afloat as a consequence.
“ASIC data shows insolvencies are tracking at close to 50% below 2019 levels, which goes to show the extent to which government stimulus and protection measures are keeping businesses on life support, including businesses that have not been viable for some time.
“Deloitte Access Economics modelling estimates about 240,000 small businesses are at risk of failure, highlighting the critical need for small businesses to sit down with their trusted financial adviser for a viability assessment.
“My office continues to recommend the establishment of a small business viability voucher program, where small business owners facing financial stress can obtain a voucher valued up to $5,000 to access tailored advice on the state of their business.
“The voucher would ensure small businesses have access to the expertise they need to judge business viability.
“Unfortunately small businesses with cash flow issues, compounded by falling revenue, may not seek out professional advice because it’s deemed to be unaffordable. This could prove to be devastating for the business owner and their family, down the line.
“We know the sooner a small business owner experiencing financial stress seeks assistance from an accredited professional, the better the outcome,” says Ms Carnell.
“The voucher would ensure small businesses have access to the expertise they need to judge business viability.
“Unfortunately small businesses with cash flow issues, compounded by falling revenue, may not seek out professional advice because it’s deemed to be unaffordable. This could prove to be devastating for the business owner and their family, down the line.
“We know the sooner a small business owner experiencing financial stress seeks assistance from an accredited professional, the better the outcome,” says Ms Carnell.
Axe fringe benefits tax
THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has urged the Federal Government to abolish fringe benefits tax (FBT) for at least two years to provide a much-needed cash flow boost to the economy and support struggling small businesses.
In a letter to Treasurer Josh Frydenberg, Ms Carnell argued this small change to the tax system would provide a big boost to small businesses in the industries hardest hit by the COVID crisis.
“Small businesses are unfairly impacted by the fringe benefits tax,” Ms Carnell says.
“As it stands, small businesses are required to pay FBT on items that large businesses often provide in-house to retain staff such as meals, gyms and childcare centres.
“Larger businesses can actually claim some services as business expenses, without paying FBT.
“But small businesses that provide the same benefits to their teams offsite have to pay FBT.
“A the same time, high rates of FBT acts as a disincentive to businesses spending with small businesses, particularly those in the hospitality and tourism sectors which are hurting the most right now.
“A weekend away, lunch at a restaurant or a team bonding game of golf, all attract FBT.
“FBT is discouraging businesses from spending with small businesses, which reduces the amount of money flowing into the economy.
“Fringe benefits tax accounted for less than 1% of government revenue in 2019/2020 and that figure is likely to be even less in the current financial year due to the economic downturn.
“Abolishing the FBT would cost no more than $4 billion a year to the Government but it would be an effective support measure for small businesses and also stimulate cash flow into the economy at a time when we need it most.
In a letter to Treasurer Josh Frydenberg, Ms Carnell argued this small change to the tax system would provide a big boost to small businesses in the industries hardest hit by the COVID crisis.
“Small businesses are unfairly impacted by the fringe benefits tax,” Ms Carnell says.
“As it stands, small businesses are required to pay FBT on items that large businesses often provide in-house to retain staff such as meals, gyms and childcare centres.
“Larger businesses can actually claim some services as business expenses, without paying FBT.
“But small businesses that provide the same benefits to their teams offsite have to pay FBT.
“A the same time, high rates of FBT acts as a disincentive to businesses spending with small businesses, particularly those in the hospitality and tourism sectors which are hurting the most right now.
“A weekend away, lunch at a restaurant or a team bonding game of golf, all attract FBT.
“FBT is discouraging businesses from spending with small businesses, which reduces the amount of money flowing into the economy.
“Fringe benefits tax accounted for less than 1% of government revenue in 2019/2020 and that figure is likely to be even less in the current financial year due to the economic downturn.
“Abolishing the FBT would cost no more than $4 billion a year to the Government but it would be an effective support measure for small businesses and also stimulate cash flow into the economy at a time when we need it most.