Small business. Big opportunities. VECCI Small Business Taskforce Report
Small business. Big opportunities.
VECCI Small Business Taskforce Report
Jobs
> Enablesmallbusinessestoemploymorepeoplebyreformingpenaltypayratestructuresforsmallbusinessemployers.
> Simplifyexistingworkplacerelationslegislationapplyingtosmallbusiness,includingthecontentofmodernawards.
> Include‘minimumengagement’asanawardmatterthatcanbevariedundertheindividualflexibilityarrangements(IFA)inallawards.
Skills
> Offersmallbusinessaone-yearholidayfrompayrolltaxforeachnewemploymentplacementofayoungpersonbetweentheagesof15to25engagedintheirfirstfulltimejob.
> Reintroducepayrolltaxexemptionsforeligiblenewtraineesandapprentices,ascurrentlyexistinNSW,QLDandWA.
> Redirect$20millionofVictorianTrainingGuaranteefundingtoboostapprenticeships/traineeshipsinhospitality,businessadministration,retailandtourism.
Costs
> Raisethepayrolltaxfreethresholdfrom$550,000to$850,000.Donotintroduceanynewtaxesorincreaseexistingtaxesonsmallbusiness.
> CommittotheprogressivereductioninWorkCoverpremiums.
> Reviewandrationalisethenumberofbusinessregulators.ReinstatetheOfficeoftheRedTapeCommissionerandstrengthentheCommissioner’senforcementpowers.
Exports
> Commit$75millioninfundingtosecureVictoria’sInternationalEngagementStrategyforafurtherfouryears,withprioritygiventofacilitatingSMEexports.
> DevelopastrategytoactivelyleverageopportunitiescreatedbyFreeTradeAgreementsandassistVictorianSMEstotakeadvantageofthese.
> CommittoanddeliverfreighttransportinfrastructureupgradesinregionalVictoriatoenablesmallbusinesses,particularlyinagricultureandmanufacturing,toleverageexportopportunitiesandreducecosts.
VECCI’s small business priorities and what governments must do to keep small business competitive
Innovation
> Reducethecompanytaxrateto10percentonSMEprofitsearnedfromtheirpatentsdevelopedinAustralia.
> Aimfora30percentincreaseinscience,technology,engineeringandmaths(STEM)graduatesoverthenextdecade.
> ExpandtheVictorianGovernment’sInnovationVoucherProgramtosupportICTbasedR&DactivitiesthathelpSMEservicesectorbusinessesdevelopnewandinnovativevalueofferings.
Finance
> Providetailoredtrainingforsmallbusinessonhowtoproducestrongercreditapplications.
> Implementtheextensionofunfaircontracttermprotectionstosmallbusiness,asproposedbytheCommonwealthGovernment.
> Consolidateexistingfederal,stateandlocalgovernmentinformationonavailablesmallbusinessgrantsandfinancialsupportunderasingleelectronicpointofentry.
Procurement
> Requiregovernmentstopublishhowsuccessfuleachmajordepartmentandagencyisatmeetingthefairpaymentprovisionforsmallbusinesses.
Automaticallyaddlatepaymentfeestoinvoicesnotpaidontime,removingtheonusonsmallbusinesstoinvokepenaltypaymentclauses.
> EncouragegreateropportunitiesforregionalsmallbusinessesbyencouragingVIPPPlanstooutlinethelevelofvalue-addactivitiesthatwillbesourcedfromregionalareas.
> Forallgovernmentprocurementthatisnotrequiredtogotoopentender,requireatleastonequotetobesoughtfromasmall-to-mediumsizedenterprise.
Introduction 5
Helpsmallbusinessesemploymorepeoplebyaddressingcriticalworkplacerelationsconstraints 8
Addresssmallbusinessskillsrequirements 12
Lowersmallbusinessdirectandindirectcosts 17
Getmoresmallbusinessesintoexporting 22
Encouragesmallbusinessinnovation 27
Improvesmallbusinessaccesstocompetitivelypricedfinance 32
Supportsmallbusinessaccesstogovernmentpurchasing 36
VECCI’sSmallBusinessPolicyTaskforce 39
Table of Contents
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Smallbusinessisimportantbusiness.Thoughtheymaybesmallinsize,smallbusinessesarebigonideas,entrepreneurshipandinnovation.Takentogether,theyaremajoremployersandkeydriversofeconomicactivity,investmentandtrade.
Smallbusinessesarenotjustbigbusinessesonasmallerscale.Thenatureoftheiroperationsandthewaytheyinteractwithgovernments,consumersandotherbusinessesmeanstheyfaceuniquechallengesingrowingtheiroperationsandworkforces.
Thesechallengesneedtobeunderstoodbygovernmentsatalllevels.
AsVictoria’slargestandmostinfluentialbusinessorganisationrepresentingthe
interestsofsmallbusinessacrossthestate,VECCIhasidentifiedsevenpriorityareasgovernmentsmustfocusontoensuresmallbusinessisevenmoreproductiveandcompetitive:
1. Jobs–addressingcriticalworkplacerelationsconstraintsthatpreventsmallbusinessesfromemployingmorepeople.
2. Skills–addressingsmallbusinessskillsrequirements.
3. Costs–loweringsmallbusinessdirectandindirectcosts.
4. Exports–gettingmoresmallbusinessesintoexporting.
5. Innovation–encouragingsmallbusinessinnovation.
6. Finance–improvingsmallbusinessaccesstocompetitivelypricedfinance.
7. Procurement–improvingsmallbusinessaccesstogovernmentpurchasing.
TheseprioritiesandtheirrecommendationsweredevelopedbysmallbusinessthroughtheworkofVECCI’sSmallBusinessPolicyTaskforce.
ItakethisopportunitytothankTaskforcememberswhosharedtheirtime,expertiseandexperienceincomingtogethertoidentifyissues,opportunitiesandideasthatwilldrivesmallbusinessgrowthandsuccessin2015andbeyond.
We seek a commitment from governments to make small business a priority by taking up the recommendations contained in our agenda. Doing so will give small business the best chance to grow their workforces, continue to innovate and achieve further success at home and abroad.
Introduction
Mark Stone VECCIChiefExecutive
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A key starting point for policy makers is to determine an agreed, clear and consistently used definition of ‘small business’.
Asthetablebelowshows,thereisnoconsistentlyusedorprecisedefinitionofasmallbusiness.
Commondefinitionscategorisebusinessesbasedon:theirnumberofemployees,asusedbyFairWorkAustralia(FWA)andinmostsurveysofsmallbusinesses(ABS);orannualrevenue,asusedbytheAustralianTaxationOffice(ATO).
Metric threShold inStitution PurPoSe
Employees <15 FWA UnfairDismissallaws
<20 ABS Businesssurveys
ACCIandSensis Businesssurveys
RBA Businessliaison
<50 ASIC Annualfinancialreports
LegalStructure Unincorporated RBA Analysisoffinancialconditions
Revenue <$2million ATO Taxation
<$50million APRA Prudentialsupervision
Individualloansize <$1million APRA Prudentialsupervision
<$2million RBA Analysisoffinancialconditions
Source:ReserveBankofAustralia,QueenslandChamberofCommerce&Industry.
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Small businesses are different to larger businesses.
98% of Victorian businesses are small.
Smallbusinesses:
> Canbedisproportionatelyaffectedbythecostsofregulatorydecisionsandunnecessaryredtape.
> Havefewerresources–beittime,information,moneyorstaff–attheirdisposaltocopewiththeirregulatoryobligations.
> Areverydiverseandcutacrossallsectorsoftheeconomy,upanddownthesupplychain.
Source:ABS,CountsofAustralianBusinesses,IncludingEntriesandExits,8165.0,June2014
Non-employing328,452
1–19employees196,897
20–199employees12,479
200+employees939
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Help small businesses employ more people by addressing critical
workplace relations constraints
one
Intoday’seconomy,smallbusinessneedsmoreflexibilitytoadjusttheirlaboursupplyandproductivitytocompeteinglobalsupplychains.Firmsoperatinginkeyserviceindustrieslikeretail,tourismandhospitalitymustbeabletorespondtopeaksandtroughsindemand.
Inflexibleworkplacerelationsrules,whichoperateona‘onesizefitsall’basisora9amto5pm,MondaytoFridayparadigm,donotreflecttheevolutionofbusinessandspecificneedsoffirmsoperatingintheservicessector.TheydonotreflecttheneedsandcapacitiesofthemajorityofAustralianemployers,includingsmallbusiness.
Theyalsodonotreflectthediverseneedsandpreferencesofjobseekersandemployeeswhoalsorequiremoreflexibilityinnotonlythetypeofwork,butthehoursofwork.
Itisvitalthatpolicy-makersunderstandthatgoodlabourregulationmustworkacrossarangeofdiversebusinessarrangementsandeconomiccircumstances.
Inflexiblelabourrulesdonotallowfirmstostructuretheirbusinessoperationsinthemostefficientandproductivemanner.Suchrulesaddtocostandeconomicinefficiency,andcontributetoless-than-optimumperformanceofthelabourmarketandtheeconomy.
WithoutmajorreformoftheFairWorkAct2009;bothinitsoperationandinterpretation,thesystemwillcontinuetoactasadampeneronthecapacityoffirmstoexpandandcreateemploymentopportunities.
VECCIconsiderskeyaspectsoftheworkplacerelationssystemmustbesubjecttourgentreformifAustraliaistomaintainworkplaceflexibility,increaseproductivity,growemploymentandharnesstheopportunitiespresentedintheAsianCentury.
Recognisingthattheoperationofthenationalworkplacerelationssystemisgovernedbyfederallaws,ourreformrecommendationsinthissectionareprincipallydirectedattheCommonwealthGovernment.
Business competitiveness in the modern, global marketplace requires a high level of labour market adaptability and flexibility.
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> Enablesmallbusinessestoemploymorepeoplebyreformingpenaltypayratestructuresforsmallbusinessemployers.Byincreasingdirectbusinesscosts,penaltyrateshaveasignificantnegativeeffectonbusinessemploymentandturnover.Penaltyratescanbe100percentofnormalratesonSundaysand150percentonpublicholidays.
> Asanalternative,introduceflexibleweekendpenaltyrates,wherebycurrentpenaltyratespaidonSaturdaysandSundayswouldinsteadbepaidonanysixthorseventhdayoftheweekworkedbyanemployee.
ThischangerecognisesthefactthatweliveinamoreflexiblesocietywherethepreferreddaysofrestarenolongernecessarilySaturdayorSunday.Thischangewouldretaincurrentpenaltyratesandcontinuetoprovideaweekendguaranteeforeachemployee(asanemployerwouldhavetopaypenaltyratestoanemployeewhoworkssixorsevendaysperweek),whilegivingbusinessestheflexibilitytostructuretheiremploymentarrangementssuchthattheycanopenonSaturdaysandSundayswithoutincurringpenaltyrates.
> Changethedefinitionof“smallbusinessemployer”intheFairWorkAct2009toreferto“fewerthan20FullTimeEquivalent(FTE)employees”ratherthan15asiscurrentlythecase.Thiswillexpandthecoverageoftheclausesrelatingtominimumengagementperiod(s383),SmallBusinessFairDismissalCode(s385,338)andExemptionorRedundancyPay(s121)(1b).
> Simplifyexistingworkplacerelationslegislationapplyingtosmallbusiness,withoutremovingtheintentofregulationstoprovidesafe,fair,productiveandsuccessfulworkplaces.
Smallbusinesscurrentlyneedstocomplywithnumeroussubstantialpiecesoflegislation(forexample,taxation,superannuation,OHS,equalopportunityandcorporationslaw)thatcanactasamajordisincentivetogrowth,employmentandinvestment.
> SimplifyandstreamlinethecontentofmodernawardsthattheAustralianGovernmenthasacknowledged“canbeparticularlyconfusingforsmallbusinessoperatorsandindividualemployeeswhogenerallydonothavespecialistworkplacerelationsexperience”.Theobjectivemustbetoincreasemodernawardcertainty(businessesneedtobeconfidentinapplyinginformation),efficiency(businessesneedtospendlesstimelocatingrelevantawardsections),ease(lesslegaljargon)andimprovethelevelofsupportavailable.
> Include‘minimumengagement’asanawardmatterthatcanbevariedundertheindividualflexibilityarrangements(IFA)inallawards.Thiswouldallowemployeesandemployerstodecidethemostappropriateminimumhoursofengagementperday.CurrentlyIFAsallowvariationstoovertimerates,penaltyrates,allowances,leaveloadingandworkinghours,butnot‘minimumengagement’.
> EnsuretheFairWorkAmendmentBill2014givestheFairWorkCommissionthepowertodismissclaimswhereanapplicantfailstoattendaconferenceorhearing.Suchameasurewouldhelpreducetheburdenofunfairdismissalclaimsbeingtimeconsumingandexpensiveforsmallbusiness.Thereformproposalshouldalsoapplytoconciliations.10 |
Penalty rates have their origins in a labour market quite different to that of much of the Australian labour market today … The Australian economy today is dominated by the service sector, part-time work, casual work, working women and flexibility are the norm for many. Professor Phil Lewis, Director, Centre for Labour Market Research, University of Canberra
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Address small business skills requirements
two
Unfortunately,manysmallbusinessownersfaceanumberofchallengesinattemptingtostrengthenandgrowtheskillsbaseoftheirbusiness.Theseincludedifficultiesattractingandretainingqualitycandidatestofillemployment,traineeshiporapprenticeshipvacancies.Commonproblemsrelatetocoreskillcompetencies,alackofworkreadinessandpoorunderlyingliteracyandnumeracystandards.
Theseconcernshavebeencompoundedbytherecentremovalofstategovernmenttrainingfundingforstudentsengagedinpart-timeemployment.Alsoofconcernisthereductioninfundingratesforlowerlevelqualificationsthatprovideliteracy,numeracyandworkpreparationskillsformanyyoungpeopleinindustrieslikeretail,hospitality,tourismandadministration.
VECCIisalsoconcernedbycomplaintsfromemployersaboutthedecliningqualityoftrainingdeliveryacrossindustrysectors.EarlyindicatorsfromtheCommonwealthVETReformTaskforceReviewarethatmanyemployersandstakeholdersareconcernedthatprovidersarenotemployer-driven.
Thereneedstobeastrongerfocusontrainingproviderdeliveryandaccountabilitywithasupportiveauditcomplianceregimethatleadstoimprovedoutcomes.Allstakeholdersmusthavegreaterconfidenceinthetrainingsystem.
Industriesundergoingstructuraladjustmentneedaccesstoaneducationandtrainingsystemthatsupportsretraining,reskillingandredeployment.
Servicesectorindustrieslikeretail,hospitalityandtourismprovideimportantentrylevelemploymentopportunitiesthathelplaunchcareersformanyyoungVictorians.Fortheseindustries,itisessentialthatlinkstopostschooltrainingarestrongandthegovernmentliftsinvestmentinservicesectortraining.
Emerginghighgrowthindustrieslikeadvancedmanufacturingrequireaneducationandtrainingsystemthatfostersinnovationandleadership.
Itisnolessimportantthatgovernmentscontinuetoworkwithindustrytoaddressgeneralistcapabilitygapsintheknowledgeandexperienceofindividualsestablishingorrunningabusiness.
Thesecanincludeinformationandabilitygapsrelatingtoresearchanddevelopment,qualitymanagement,salesandmarketing,supply,distributionandfinance,personnel,andbusinessplanning.Theobjectivemustbenotonlytoimproveenterpriseeffectivenessandreducethebusinessfailurerate,butspurgreaterinnovationandentrepreneurshipamongsmallbusiness.
High quality workforce and management skills are crucial to small business success.
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37.5%SuggestedincreaseinfundingforVictorianGovernment’sEmploymentStartUpforBusinessProgram.
> EstablishanewlowcostBusinessFoundationsshortcourseprogram–deliveredbyindustry–thatenablesSMEstart-upstoacquaintthemselveswiththefundamentalprerequisitesneededtoestablishandoperateasmallbusiness,rangingfrombasicsalesandmarketing,HRandworkplaceOHSobligations,basicaccountingandcash-flow,taxmanagement,creditmanagement,customerservice,meetinggovernmentrequirementsandbusinessplanning.
Successfulcompletionofthecoursewouldentitlecourseparticipantstoadiscountonthecostsassociatedwithregisteringabusinessnameandmeetingothergovernmentlicenceandregistrationrequirementsrelevanttostartingabusiness.
> Wheresmallstart-upbusinessesbecomeamemberofalocalchamberofcommerce,professionalorindustryassociation,extenda50percentdiscountonthecostsassociatedwithregisteringabusinessname.
> AssessthescopetotransferthefundingandadministrationofVictoriangovernment(SmallBusinessVictoria)workshops,seminars,festivaleventsand/ormentoringservicestotheprivatesectorandsetanSMEparticipationratetargetof15percentby2017.Lessthan6percentofVictoriansmallbusinessescurrentlyaccesstheseservices.
Whatgovernmentsmustdo
$1,455Annualpotentialsavingintaxtoabusinessforanapprenticeearning$30,000ifpayrolltaxexemptionsforeligibleemployeesarereintroduced.
<6%PercentageofVictorianbusinessesthataccessgovernmentworkshops,seminars,festivaleventsand/ormentoringservices.
Entrepreneurship involves more than business start-up… it also includes the development of skills to grow a business, together with the personal competencies to make it a success.Entrepreneurship Skills for Growth-Orientated Businesses, Professor Thomas M. Cooney, Dublin Institute of Technology
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> ConductathoroughmappingandanalysisofallSMEsupportprogramsprovidedbytheVictoriangovernmentanditsagenciestominimiseduplicationandinefficienciesinthedeliveryofsupportprograms.Inadditiontoparticipantfeedbackasakeymeasureofprogrameffectiveness,establishmoreobjectiveperformanceindicatorstoassessperformance,e.g.,netgaininthenumberofsmallbusinessstart-ups,employmentandtrade.
> Ensurethefinancialvalueofgovernmentgrantstosmallbusinessexceedsthecostsassociatedwithapplyingfor,administeringandreportingongrantoutcomesbyaminimumratioof3:1.
> Helpaddressrisingyouthunemploymentbyofferingsmallbusinessaone-yearholidayfrompayrolltaxforeachnewemploymentplacementofayoungpersonbetweentheagesof15to25engagedintheirfirstfulltimejob(workingatleast30hoursperweek).AdiscountonWorkCoverpremiumsapplicabletoeachnewplacementshouldalsobeconsidered.
> Helpsmallbusinessemployersandstrengthenyouthemploymentpathwaysbyredirecting$20millionofVictorianTrainingGuaranteefundingtoboostapprenticeships/traineeshipsinhospitality,businessadministration,retailandtourism.
> Reintroducepayrolltaxexemptionsforeligiblenewtraineesandapprentices,ascurrentlyexistinNSW,QLDandWA.
Underthisproposal,eacheligibleemployeeabusinesshasonatraineeshiporapprenticeshipinVictoriacouldpotentiallyexcludethatemployee’swagefrompayrolltax(4.85percent)forthefulldurationofthetraining.Example:Foranapprenticeearning$30,000,andthepayrolltaxinVictoriaof4.85percent,abusinesscouldsave$1,455inpayrolltaxeachyear.
TheCommonwealthDepartmentofEmploymentJobs2014reportshowsthesesectorsareexpectedtoaccountforuptosixpercentofemploymentoverthenextfouryearssoitisvitalthattrainingisresponsivetotheneedsoftheservicesector,aswellasthegoodsproducingsector.
> ExpandfundingfortheVictorianGovernment’sEmploymentStartUpforBusinessProgramto$12million,fromitscurrentlevelof$7.5million.
TheEmploymentStartUpforBusinessprogramofferseligibleemployersagrantofupto$4,000ontheinitialemploymentofayoungpersonbetweentheagesof15to25thathasbeenemployedfora16weekperiodandhasundertaken,orisenrolledin,accreditedtrainingtothevalueofatleast$800thatisappropriatetotheworkplaceandthepositiondescription.
> Supporttheincreaseduptakeofworkexperience,internshipsandvocationalplacementsinsmallandmediumsizedbusinessesbyclarifyinghowtheFairWorkActappliestothesearrangements.CurrentguidelinesissuedbytheFairWorkOmbudsmanlacktheprecisionneededtoengenderconfidenceandconformanceamongallstakeholders.
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Lower small business direct and indirect costs
three
TheoperationofVictoria’sregulatoryregimegenerallyandthecompetitivenessofthestate’staxsysteminparticular,playacriticalroleinunderpinningsmallbusinessgrowth,confidenceandinvestment.Forthisreason,VECCIhasbeenanactiveandconsistentadvocateoftheneedforreformsthatlowerbothdirectandindirectbusinesscosts.
Direct costs – business taxation
VECCIwelcomedthereductioninthepayrolltaxratefrom4.9percentto4.85percentannouncedinthe2014statebudget.Thisreductioncomesatanimportanttimeformanybusinessesandprovidesanestimated$234millioninsavingsover4years.VECCI’sadvocacywasalsoinfluentialinsecuringtheaverage2percentreductioninWorkCoverpremiumsthatcameintoeffectfrom1July2014.
RecognisingthatthecompetitivepositionofVictorianbusinesshascomeunderintensepressurefromarangeofcostimpoststhatareunlikelytosubsideinthefuture,VECCIwillcontinuetoactivelyadvocateforbusinesstaxrelief.OurTakingCareofBusinessagendaintheleaduptothe2014stateelectioncallsforanincreaseinthepayrolltaxthresholdto$850,000inordertohelpkeepVictoriansmallbusinesscompetitive.
inDirect costs - regulation reform
Smallbusinessrecognisesthatwell-designedregulationcanprovidebenefitsforbusinessbyimprovingeconomicstability,providingoperationalcertaintyandincreasingconsumerconfidence.
However,becauseregulationsaffectallfacetsofbusinessincludinginputs,prices,outputandvolumes,unnecessary,complexandpoorlydesignedregulationsalsoconstraintheabilityofbusinesstoprovidethebestproductorserviceatthelowestcost.
Theeffectsofnumerouschangestoregulations-ortheprospectofchanges–canalsobedamaging,leadingtolostconfidence,lostmarketsandadisincentiveforrisk-taking,productivityandentrepreneurship.
VECCIhaswelcomedthecommitmentbysuccessivestategovernmentstosetredtapereductiontargetsandhasworkedwithitsmembersandtheformerRedTapeCommissionertoidentifyexamplesofnuisanceredtapeandopportunitiestoreformorrepealregulationsthatunnecessarilyimpedebusinesscompetitiveness.
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Victoria’s regulatory regime and competitive tax system play a critical role in underpinning small business growth.
Direct costs
> AssistSMEsbyraisingthepayrolltaxfreethresholdfrom$550,000to$850,000.Donotintroduceanynewtaxesorincreaseexistingtaxesonsmallbusiness.
> Freezefor24monthstheindexationofallfees,finesandchargessetbyregulation.
> CommittotheprogressivereductioninWorkCoverpremiumsinordertostrengthenVictoria’scompetitivenessandreducecostsforemployers.
> ReducethedifferentialbetweentheFireServicesPropertyLevychargedonresidentialandcommercial/industrialpropertiesbyatleast25percent.
Currentlycommercialandindustrialpropertyownerspaydoublethefixedchange($205versus$102)andavariablechargeupto13timesthatofresidentialproperties(85.9centsper$1000ofcapitalimprovedvalueformetropolitanindustrialpropertiesversus6.5centsformetropolitanresidentialproperties).Thisresultsinbusinessesmakingadisproportionatecontributiontofundingfireservicesandcrosssubsidisinghouseholds.
> Reducetherateofdutyongeneralinsurancefrom10percentofpremiumsto9percenttomatchratesinNSWandQueensland.
ThiswouldprovideasavingtoVictoriansofaround$100millionperannum.AreductionwouldprovidedirectrelieftobusinessesandsignalatransitiontowardsbroaderreformofstatetaxesconsistentwiththefindingsoftheHenryTaxReview.
inDirect costs
> Reviewandrationalisethenumberofbusinessregulators.
> Streamlinehowsmallbusinessesinterfacewithgovernment.Providinginformationtoandreceivinginspectionsfrommultiplebusinessregulatorscanbetimeconsumingandcostly.Gettingagenciesandorganisationstosharemoreinformationandstreamlinehowtheyinterfacewithsmallbusinessneedstobeapriority.
> ReinstatetheOfficeoftheRedTapeCommissionerandstrengthentheCommissioner’senforcementpowers.
$234MSavingsover4yearsresultingfromthereductioninthepayrolltaxratefrom4.9%to4.85%
10%è9%Suggestedreductioninrateofdutyongeneralinsurance,tomatchratesinNSWandQLD
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Whatgovernmentsmustdo
> IncreasetheresourcingoftheOfficeoftheRedTapeCommissionertosupportadeeperandwiderregulationreformagendaandacceleratetheimplementationofreformproposals.EstablishanSMEreferencegrouptodevelopandadviseonnewreformproposalsspecificallytargetedataddressingburdensmostrelevanttosmallbusiness.
> Undertaketargetedreviewsintothefollowingregulatory‘hotspots’:
> WasteManagementPolicy(UsedPackagingMaterials).
> Vocationaleducationandtrainingregulation.
> Administrationofstatetaxesandcharges.
> Localgovernmentplanning.
> Committoazeronetincreaseinregulatoryrequirementsby2018.Raisetheexisting25percentregulatoryreformtargettoa30percentreductioninthelevelofredtapeby2016,ensuringatleasthalfoftheidentifiedreformsdirectlybenefitsmallbusiness.
> AcceleratethereviewoftheOccupationalHealthandSafetyRegulations2007whichsunsetin2017andsetatargetfora15percentreductionintheregulatoryburden.SuchareformcouldconsolidateVictoria’spositionashavingthesafestworkplacesinAustraliaatthelowestaveragecosttobusiness.
> StrengthentheusebygovernmentdepartmentsandagenciesofRegulatoryImpactStatements(RIS)toassesstheimpactsonsmallbusinessofproposalsfornew,sunsettingoramendingregulations.
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Taxes, charges and red tape are major constraints on small business
TheTop10constraintsonsmallbusiness:1. BusinessTaxesandGovernmentCharges2. InsufficientDemand3. WageCosts4. Non-WageLabourCosts5. ImportCompetition6. FederalGovernmentRegulations7. StateGovernmentRegulations8. AvailabilityofSuitablyQualifiedEmployees9. ChargesbyLendingInstitutions10. InsufficientRetainedEarningsSource:ACCISmallBusinessSurvey,August2014
Get more small businesses into exporting
four
Victoria’s export performance has been a key feature of the state’s economic performance over the past three years.
AsVECCI’sTakingCareofBusiness2014stateelectionbusinessagendanotes,Victoria’sexportperformancehasbeenakeyfeatureofthestate’seconomicperformanceoverthepastthreeyears.
Victorianbusinesses,largeandsmall,haveworkedhardtoraisetheircompetitivenessbydevelopingnewprocesses,productsandmarkets.
ManyVictoriancompaniesareleveragingtheirexpertiseinagribusinessproduction,logistics,marketingandinvestmenttohelppositionthestateasafoodbowltoAsia.
Intheadvancedmanufacturingsector,innovationisplayinganincreasinglyimportantroleinhelpingdrivenewcommercialopportunitiesathomeandabroad.ExcitingnewR&Dcapabilitiesarebeingcommercialisedinadvancedmaterialsmanufacturing,suchascarbonfibre.
Victoria’stourismandinternationaleducationperformancehascontinuedtostrengthenandwithfurtherpotentialtogrow,governmentsmustsupporttheseimportantsectors.
Newexportprospectsarealsoemerginginspecialisedareaslikehealthserviceswherethegrowingaffluenceofourneighboursandageingpopulationsarecreatingincreaseddemand.
Similarly,theknowledgeandexperienceofourbusiness,professionalandtechnicalservicessectorisbeingincreasinglysoughtafterinternationally.
Nationally,servicesexportshavegrownbyanannualaverageoffourpercentinthepastdecade.Australiaexported$52.4billionofservicesin2012-13.Victoria’ssharewas$12.75billionorjustover24percent.
TheexpandingnetworkofFreeTradeAgreements(FTAs)AustraliahaseitherenteredintooriscurrentlynegotiatingwillplayanimportantroleinhelpingAustralianexportersaccessnewmarketsandexpandtradeinexistingmarkets.
However,thefactremainsthatAustraliansmallandmediumsizedbusinessexportsonlyaccountforaround5percentofthevalueoftotalgoodsexportsandrecentVECCIresearchshowsthatonlyoneinfivesurveyedVictorianfirmsareactivelyplanningtotakeadvantageoftheopportunitiesavailableintheAsiaCenturyoverthenext12months.
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Source:DFAT
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FeedbackfromVECCISMEmembershasindicatedthatanumberofbarriersexisttostrengtheningtheirinvolvementininternationaltrade.Theseinclude:
> Lackofanexportbusinessstrategy(andsupportingmarketintelligence)andrelevantskillsatthefirmlevel.
> Confusionorlackofinformationabouttheexportsupportprogramsavailableatstateandfederalgovernmentlevels.
> Alackoffinancetosupportthescalingupofoperationstomeetincreasedexportdemand.
> Highproductionandtransportationcosts.
Whiletheprivatesectorneedstotaketheleadindrivingnewexportgrowth,itisclearthatgovernmentscanalsodomoretoreducethecost,information,skillsandregulatorybarriersthatpreventsmallbusinessfromleveragingnewcommercialopportunitiesintheinternationalmarketplace.
> Commit$75millioninfundingtosecureVictoria’sInternationalEngagementStrategyforafurtherfouryears,withafocusonfacilitatingSMEgoodsandservicesexports.
> Allocate$2milliontocreateaSmallBusiness:AWorldofOpportunitiesadvertisingandinformationcampaignthatisdesignedtoaddressthelackofawarenessamongsmallbusinessesofexportopportunitiesanddirectthemtoprogramsandsupportspecificallytargetedatfirsttimeexporters.
ThislackofawarenesswasdemonstratedintheSeptember2014VECCI-BankofMelbourneBusinessTrendsandProspectsSurveywhere66percentofrespondentsindicatedthattheirbusinesswasnotplanningtotakeadvantageofopportunitiesavailableintheAsianCentury(e.g.risingincomes,increasedspendingandchangingconsumertastesinAsia).
> Relatedly,developastrategytoactivelyleverageopportunitiescreatedbyFreeTradeAgreementsandassistVictorianSMEstotakeadvantageofthese.
> Fundanew$5millionInvestmentReadyprogram,deliveredbyindustry,toidentifyandsupportVictorianSMEsseekinginwardinvestmentaspartoftheirtradeexpansionstrategies.
Theprogramwouldidentifyspecificprojectsandproposals,assistfirmstodevelopandpresentproposals/informationinawaythatislikelytoattractforeigninvestors,andhelpfacilitatedealflow.
> CommittoanddeliverfreighttransportinfrastructureupgradesinregionalVictoriatoenablesmallbusinesses,particularlyinagricultureandmanufacturing,toleverageexportopportunitiesandreducecosts.
Whatgovernmentsmustdo:
42%PercentageofAustralianexportersthatareSMEs
5%PercentagecontributiontototalvalueofAustralianexportsbySMEs
$75MTosecureVictoria’sInternationalEngagementStrategyforafurtherfouryears.
$2MTocreateaSmallBusiness:AWorldofOpportunitiesadvertisingandinformationcampaign.
$5MTofundanInvestmentReadyprogramtoidentifyspecificprojectsandproposals,assistfirmstoattractforeigninvestors,andfacilitatedealflow.
A number of regulatory barriers exist to strengthening involvement of SMEs in international trade.
AustraliahasFTA’sinplaceorundernegotiationwiththeAssociationofSouthEastAsianNations,Chile,NewZealand,USA,Malaysia,Singapore,Thailand,Korea,Japan,China,India,Indonesiaandanumberofgulfandpacificislandcountries.
71% CountriescoveredbytheseFTAsaccountfor71percentofAustralia’stotaltrade.
Free Trade Agreements: A World of opportunities.
Encourage small business innovation
five
Innovationisrecognisedinternationallyasthekeytoboostingproductivity,creatingmoreandbetterjobs,enhancingcompetitivenessandgrowinganeconomy.
AstrongerinnovationperformanceacrosstheprivateandpublicsectoristhereforecriticaltoimprovingVictoria’seconomicprospectsinthehighlycompetitiveglobalmarketplace.
Smallbusiness,astheengineofgrowthanddriverofnewideasandrisktaking,makesasignificantcontributiontoinnovation.Thiscontributionneedstocontinuetobesupportedbypolicymakersatstateandfederallevels.
Attheindividualenterpriselevel,innovationmayberepresentedbymanyactivities,rangingfromresearchpartnershipswithuniversitiesandotherpublicsectorresearchinstitutionsoncoretechnologies,throughinternallygeneratedexperience-basedprocessandproductimprovements,tonewwaystogeneratebusiness(channels,markets,customers).
Whilefirmlevelinnovationtendstohaveastrongfocusoneconomicgains,itcanalsocontributetosocietymorewidelybyimprovingqualityoflifeandprovidingsolutionstobroadersocialissuessuchascommunityandindustryadjustment,health,educationandtheenvironment.
Innovationisinfluencedbydemandandsupplysidefactors–thatis,bothincentivesandcapacityforchange.Increasedcompetitioncanprovideanincentiveasbusinessesseektoobtainormaintainacompetitiveedge.Governmentdrivenincentives,suchasR&Dtaxconcessions,canalsohelpspurinnovation.
However,incentives,includingnecessity,arenottheonlyfactorsthatdriveinnovation.Theprivatesectorrequiresaworkforcethatisappropriatelyskilled.Innovationrequiresgeneralistskills,specialistskills,andincreasingly,multi-disciplinaryskills.
Generalinnovationskillsincludedecisionmaking,problemsolving,entrepreneurshipandbusinesssense,creativity,criticalanalysis,teamwork,culture,language,leadershipandcollaboration.
Thereisalsoaneedforspecialistskillsintheareasofscience,technology,engineeringandmathematics(STEM),aswellasmanagementandprofessionalskillsinbothtraditionalareassuchasfinanceandmarketing,andspecialistareassuchasinnovationleadershipandfacilitationthroughteams.
Capacityalsoplaysamajorrole.Innovationrequiresinvestmentinlabourandcapital.Businessescaughtupinday-to-dayoperationswithlimitedcashflowandsurpluscapitalwillstruggletoimplementinnovationdespitetheirbestintentions.Similarly,firmswillbeunlikelytoinvestinareaswheretheycannotcapturethereturns.
Whilemarket-basedcompetitionwillremainoneofthemaindriversofindustrygrowth,governmentshavearoletoplayinfundingresearch;supportingpublicsectorinnovation;promotinginnovationskillsdevelopment;disseminatinginformation;facilitatingnetworkingandcollaboration;enhancinginnovationenablerssuchasinfrastructure,ICTanddesign;andencouraginginnovationthrough‘goodregulation’andstrategicprocurement.
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Innovation: the key to boosting productivity, creating more and better jobs, enhancing competitiveness and growing an economy.
Source: Australian Bureau of Statistics, Innovation in Australian Business, 2012-13, 8158.0*Defined as businesses with 5–19 employees
of small businesses* innovate
of medium-sized businesses innovate
of larger businesses innovate
51% 63% 74%
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While innovation can take many forms, it still relies heavily on formal research and development (R&D). The challenge is to grow small business spending on R&D.
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Whatgovernmentsmustdo:
> Reducethecompanytaxrateto10percentonSMEprofitsearnedfromtheirpatentsdevelopedinAustralia.ThiswillhelpsmallbusinessesprofitfromtheirinnovationsandincreasetheadoptionrateofAustralianinnovationsbyprovidingalongertermreturnoninvestment.
> AmendthetaxingarrangementsofEmployeeShareSchemes(ESS)toensureemployeesarenottaxedupfront.ThiswillencouragehighlyskilledentrepreneurstoapplytheirskillstocommercialisingAustralianinnovation.
> Aimfora30percentincreaseinscience,technology,engineeringandmaths(STEM)graduatesoverthenextdecade.ThisrecognisesthataworkforcewithastrongSTEMskillsbaseiscriticaltobusinessinnovation.
> Establishaninvestormatchingservicethatprofitabletechstart-upscanutilisetoleveragegovernmentsupporttoscalemorerapidly(suchastheFederalGovernment’sCommercialisingIdeasProgramandtheVictorianGovernment’sInnovationVoucherProgram).
> EnsurefundingfortheVictorianGovernment’sInnovationVoucherProgramismaintainedinordertomeetexistingandanticipatedbusinessdemand.
TheprogramhelpscompaniesbyprovidingavoucherthatisusedtoaccessinnovationandR&Dfacilities,training,goods,services,adviceorexpertiseprovidedbyotherorganisations,includinguniversities,theCSIROandresearchinstitutes.Victoriancompaniesmustmakeaminimumcashco-contributionof25percentofthevoucheramountrequestedwhichisamaximumvalueof$25,000forInnovationBusinessR&DandSmartDesignvouchers,andamaximumvalueof$10,000fortheInnovationSkillsvoucher.
> ExpandtheVictorianGovernment’sInnovationVoucherProgramtosupportICTbasedR&DactivitiesthathelpSMEservicesectorbusinessesdevelopnewandinnovativevalueofferings.
TheinnovativedevelopmentanduseofICTplatformsisvitalforthecompetitivenessofVictoria’sservicessector.However,currentlytheInnovationVoucherProgramdoesnotsupporttheacquisitionordevelopmentofICTproductsorservices,andtheTechnologyVoucherProgramisfocusedontheabsorptionofexistingICT.
> IncreasefundingfortheVictorianGovernment’sCollaborativeNetworksPilotProgramfrom$1.2millionto$5millionandestablishfournewcollaborativenetworksintheareasofhealthservices,processedfoodsandbeverages,advancedbuildingmaterialsandminingservicesandtechnologies.Thesenetworkswillfocusonfacilitatinglinkagesbetweensmalltomediumsizedenterprises,researchinstitutionsandindustry,supportinginnovation,tradeandthecreationofnewproductsandserviceswithacompetitiveadvantage.
Improve small business access to competitively priced finance
six
VECCI fully supports and acknowledges the need for a strong and profitable banking sector.
However,weareconcernedthattheshareoftotallendingtobusinesscomparedtohouseholdshasprogressivelydeclined.Forexample,in1990,businessloanswere60percentoftotalloansandresidentialloans25percent.Theseshareshavenowreversed:residentialmortgagesaccountfor60percentoftotallending,withbusinesslendingapproximately35percent.
Unlikelargerenterprises,smallbusinessesrelyheavilyonintermediatedfinancefromfinancialinstitutionsfortheirworkingcapital,newcapitalexpendituree.g.onmachinery,plantandequipmentaswellasopportunitiesforoverallexpansion.
AccesstoaffordablefinancehasbeenanissueofsignificantconcernformanyAustraliansmallbusinessessincetheGlobalFinancialCrisis(GFC),asmajorbankshavebecomemorerisk-averseandconservativeintheirsmallbusinesslending.
Whilesomebusinessesarebeingdeniedcreditduetounsatisfactoryfinancialperformance,VECCIisconcernedthatevenbusinesseswithstrongtradingrecordsandsolidlendingproposalsarefindingcreditrestrictedduetoweakenedbalancesheets,reducedrevenuesorcashflows,and/orfallingcollateralvalues.
Alackofinformationforbothborrowersandlenderspreventssmallbusinessesfrommaximisingtheirchanceofobtainingfunds,anddeterslendersfrominvestinginworthwhileopportunities.Borrowersneedtobeabletoeffectivelycommunicatetheirneedstothelendertoensurethatanunderstandingisreachedandtoreducetheinformationasymmetrybetweenthetwoparties.
Recognisingthatsmallbusinessesarefundamentaldriversofjobs,innovationandinvestment,reformsthatimproveaccesstocompetitivelypricedfinancemustbeapriorityforpolicymakers.
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> AdopttheFinancialSystemInquiryFinalReportrecommendationstonarrowinformationgapsbetweensmallbusinessborrowersandlenders,therebyfacilitatinggreateraccesstolendingforbusinesses.
AkeyobjectiveofreformstotheAustralianfinancialsystemmustbetoincreasetheleveloftotallendingtoSMEsbyfinancialintermediaries.
> ImprovetransparencyanddetermineiffinancialinstitutionsareimprovingtheirservicestosmallbusinessesbyrequiringtheReserveBanktoconductandpublishaquarterlysurveyoffinancialsectorlendingtosmallbusiness.Thisshouldincludeinformationonthelevelandnatureofsmallbusinessbankingfeesandcharges,comparisonlendingrates,andclearexplanationsforanychangesinthem.
> Consolidateexistingfederal,stateandlocalgovernmentinformationonavailablesmallbusinessgrantsandfinancialsupportunderasingleelectronicpointofentry,forexample:www.business.gov.au/grants-and-assistance.
> Allocate$5millionforaprogramtoprovidetailoredtrainingtosmallbusinessonhowtoproducestrongercreditapplications.Thisshouldincludehowtosuccessfullycompleteloanapplicationsandpracticalstepssmallbusinessescantaketostrengthentheirbusinesscase,deepenrelationshipswiththeirbusinessbankers,anddocumenttheirtechnicalcapabilitiesinfinanciallanguage.
> Relatedly,encouragefinancialinstitutionstosimplifycreditapplicationprocessesanddocumentation,makingthelendingevaluationcriteriamoretransparent.Unsuccessfulapplicantsshouldreceiveastatementexplainingwhytheapplicationwasrejectedandwhatstepsneedtobetakentoaddressshortcomings.
> Requirefinancialinstitutionstosimplifyboththelengthandlanguageusedinfinancialproductdisclosurestatementsforsmallbusinessproductsandservices.
> Committoimplementingtheextensionofunfaircontracttermprotectionstosmallbusiness,asproposedbytheCommonwealthGovernmentandcurrentlythesubjectofreviewbytheAustralianTreasury.
> Weencouragegovernments,industryandothermembershiporganisationstoexplorenewopportunitiestoaddressthefundinggapforsmallercompanieslookingforcapital,includingthepossibleestablishmentofaBusinessGrowthCapitalFundtoprovideloanstofast-growthcompanieslookingtogrowtheirbusinessfurther.
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Whatgovernmentsmustdo:
Closing the small business finance gap: What other countries are doing
The£200millionSantanderBreakthroughprogramintheUnitedKingdomisagoodexampleofnewapproachestoplugtheSMEfundinggap.Breakthroughoffersinvestmentintheformofamezzanineloan.Mezzaninefinanceisawell-establishedtieroffunding,occupyingapositioninthecapitalstructurebetweenconventionalbanklendingandprivateequityinvestment.
Recognisingthatbusinessownersoftenregardanydilutionoftheirshareholdingasexpensiveinthecontextoffuturegrowth,andthereforeunattractive,themezzaninefinance
facilitiesofferedthroughBreakthroughdonothaveanequitycomponent.Themoneyisadvancedsolelyintheformofdebt,repayableatanagreedpointinthefuture.Inotherwords,thebankreceivesitsreturnsolelythroughinterestrepayments.
Aseverybusinessisdifferent,applicationsforfundingareonacase-by-casebasis.Primecandidatesareprofitablebusinesseswithatrackrecordofprofitableandcashgenerativegrowthstretchingbackatleastthreeyears.Thequalityofmanagementisalsoimportant.
$meZZanine finance Primecandidatesareprofitablebusinesseswithatrackrecordofprofitableandcashgenerativegrowthstretchingbackatleastthreeyears.
Support small business access to government purchasing
seven
VECCI considers it is vital that small business has equality of opportunity in accessing government tenders.
Giventhesizeofgovernmentspending,VECCIconsidersitisvitalthatsmallbusinesshasequalityofopportunityinaccessinggovernmenttenders.Wehavewelcomedthecommitmentofsuccessivestategovernmentstoincludelocalcontentconsiderationsintheirindustryparticipationpolicies.
CurrentVictorianIndustryParticipationPolicy(VIPP)requiresdepartmentsandagenciestoconsideropportunitiesforcompetitivelocalsuppliers,includingSMEs,whenawardingcontracts.VIPPappliestoprocurementactivitiesthatmeetorexceedthefollowingmonetarythresholds:
> $1millioninregionalVictoria
> $3millioninmetropolitanMelbourneorforstate-wideactivities
StrategicProjectsthatexceed$100millionincapitalexpenditureor$250millioninwhole-of-lifecostaresubjecttoadditionallocalcontentrequirements.However,withintheVIPPframeworkthereisnospecificorprescriptivetargetinrespectofhowmuchlocalcontentshouldmakeupthevalueofaparticularproject(forexample,20percentofthetotalprojectorcontractvalue).
VECCIconsiderstheadoptionofsuchtargetscouldplayanimportantroleinencouragingmorelocalcontentandgreaterSMEinvolvementingovernmentpurchasing,providedtheydonotcompromiseoverarchingVIPPcontestabilitycriteria.SMEsupplierswouldstillneedtodemonstratetheircompetitivecapacityinmeetingVIPPcriterialike‘valueformoney’,employment,training,andtechnologytransfer.
FeedbackfromVECCImembershasrevealedthatsmallbusinessinvolvementingovernmentpurchasingremainshamstrungbyanumberofbarriers,including:
> SMEknowledgeaboutprocurementopportunities.
> Unnecessaryscaleimpediments.
> Overlyprescriptivetenderspecifications.
> Overlyburdensomeprequalificationrules.
Manysmallbusinessestransactingwithgovernmentsalsoreportlatepaymentofcommercialdebtsbyagencies.InVictoria,FairPaymentsprovisionsapplytocontractswherethevalueofthegoodsorservicesdoesnotexceed$3million.Theprovisionsencourageagenciestopaydebtswithin30daysandpenaltyinterestappliestolatepayments.
However,theusebyagenciesoffairpaymentsclausesincontractsistailoredonacase-by-casebasisandthereislittleavailableconsolidatedinformationonwhichtoassesswhethergovernmentagenciesarepayingbusinessontime.Theonusisonsmallbusinesstoinvokepenaltypaymentclauses.
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> Reducethecomplexityofgovernmentcontractsforsmallbusinessandensuretheinsurancerequiredbysmallbusinessesreflectsthesizeofthecontracttheyaretenderingfor.Givensmallbusinessoftenonlytenderforsmaller,less-riskiercontracts,thedefaultshouldbebetween$0to$10millionforpublicliabilityinsuranceand$0to$5millionforprofessionalindemnityinsurancewhencontractingwithsmallbusiness.
> Increasethelikelihoodofsmallbusinessesbeingpaidon-timebyrequiringgovernmentstopublishhowsuccessfuleachmajordepartmentandagencyisatmeetingthefairpaymentprovision(i.e.30daypaymentrequirement)forsmallbusinessesandseta95%benchmarkforallagencies.
> RaisethethresholdvalueofcontractstowhichFairPaymentsprovisionsapplytothosewherethevalueofgoodsandservicesareuptoandincludingA$5million(GSTinclusive),toensureconsistencywithCommonwealthGovernmentlegislation.Automaticallyaddlatepaymentfeestoinvoicesnotpaidontime,removingtheonusonsmallbusinesstoinvokepenaltypaymentclauses.
> Provide$5millioninfundingtodeliversmallbusinesstrainingonhowtoaccessgovernmentprocurement,coveringhowtoprequalify,wheretofindoutabouttenders,practicaladviceonhowtoformjointventuresandintroductionstokeyprocurementofficerswithingovernmentagencies.
> AppointaVictorianProcurementCoordinatortodrawtogetherskillsandexpertiseacrossstateandlocalgovernmentinprocurement.Theirrolewouldbetodeliverconsistency,improveconsultationwithbusinessandcoordinatesharedtrainingandexperiencesamongprocurementofficersinthepublicandprivatesectors.
> EnsuresmallbusinesscapabilitiesandlimitationsaremoreeffectivelytakenintoconsiderationduringtheprocessofdesigningtendersforprojectsthatfallwithinVIPPthresholdsbyestablishingaSmallBusinessProcurementReferenceGroupwithintheofficeoftheVictorianProcurementCoordinator.
> Enablesmallbusinesstoidentifysub-contractingopportunitiesandbuildnewrelationshipsbyrequiringcompaniesthathavebeenawardedGovernmentcontractstopubliclylistsub-contractingopportunities.SuchaprocesscurrentlyexistsinWesternAustralia.
> Toencouragegreateropportunitiesforregionalsmallbusinesses,encourageVIPPPlanstooutlinethelevelofvalue-addactivitiesthatwillbesourcedfromregionalareas.
> ForallVictorianGovernmentprocurementunder$150,000(wherethreequotesarecurrentlyrequired),requireatleastonequotetobesoughtfromasmall-to-mediumenterprise.Forallgovernmentprocurementthatisnotrequiredtogotoopentender,requireatleastonequotetobesoughtfromasmall-to-mediumsizedenterprise.
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In 2012-13 Victorian Government procurement was worth almost $3.4 billion. The challenge for policy makers is to create more opportunities for small business.
Whatgovernmentsmustdo:
> KarynSobels(Chair),SimplyBusiness
> RichardHolyman,MartinandPleasance
> JeremyJohnson,SovereignHill
> ChrisBuckingham,GoToPtyLtd
> ChrisCrewther,MilduraDevelopmentCorporation
> RobertvanStokrom,DFPRecruitmentServices
> DamienButler,ButlerPtyLtdCharteredAccountants
> GrahamMargetts,Balluff-Leuze
> TerrySmit,GoWestTours
> JodieVogt,CLDesignGroup
> JohnForman,RedRockLeisure
> JohnRagg,VECCIExecutiveCouncilHonoraryLifeMember
> StevenWojtkiw(VECCIPolicySecretariat)
©VECCI2015
DISCLAIMER:ThisdocumentwaspreparedbytheVictorianEmployers’ChamberofCommerceandIndustry(VECCI).Theopinions,findings,conclusionsandrecommendationsexpressedhereindonotnecessarilyreflectVECCIpolicyortheviewsofthosepersonsorpartieswhohavecontributedtothisdocument.Fromtimetotime,andonthebasisofnewinformationandresearch,VECCIwillupdateitspoliciesandrecommendations.WhileVECCIhasendeavouredtoprovideaccurate,reliableresearchandanalysis,itwillnotbeheldliableforanyclaimbyanypartyutilisingthisinformation.
VECCI’sSmallBusinessPolicyTaskforce
vecci.org.au