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

4 |

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.

6 |

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.

20 |

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

24 |

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