The federal government says the tax office will work with small business to minimise the impact of the global economic crisis, by introducing measures including individual tax management plans, $4 million for advisory centres and guarantees of on-time payments for businesses that deal with government departments.   The on-time payment guarantee will apply to contracts with the government up to $1 million - the federal government currently has more than 65,000 contracts under $1 million and spends about $30 billion on goods and services.

From December 1 payments will be made to businesses within 30 days otherwise the companies will have the right to charge penalty interest.

Mr Rudd said the tax office’s assistance would be based on individual circumstances.

He said the government also welcomed assurances by banks  about the availability of finance to small business and claimed that small business would also benefit from the extra cash given to consumers and training places announced under the $10.4 billion economic security strategy, as well as the first home owner grant boost.

As part of its $12 million commitment, the competitive grants program will provide between $5,000 and $15,000 to small businesses to help meet the set-up costs of family friendly working arrangements. The grants will support a range of initiatives, including:

• establishing rosters based on school terms and alternative core hours, for example, 10am to 3pm;
• developing workplace policies on unpaid leave for carers and workers who have children with disability or other special needs;
• providing facilities for employees with young children such as family rooms; and
• setting up workplace mentoring.

With up to $15 000 to allocate per small business, the Government is seeking innovative proposals that suit the individual needs of the business to promote a diverse range of family friendly initiatives.

ABN Board member Susan McGrath and Chairperson Suzi Dafnis will represent the ABN at the forum and we are interested to obtain input from members before 30 November.  Please contact policy@abn.org.au, or call Susan direct on 0439 908 108 if you would like to discuss. Alternatively you can comment on this post.

From 1 October, employers will need to adjust their payrolls to take into account a $21.66 per week increase in the standard Federal Minimum Wage. The increase takes effect from the first pay period on or after 1 October. From this date, the Federal Minimum Wage increases to $14.31 per hour or $543.78 per week. Read more.