Published on 03/05/2017 by Punchmedia

Budget Hopes and Bank Relief for Small Business

Business owners have encouraged the federal government to focus on funding major infrastructure projects and look at simplifying the tax system as it prepares to reveal its much anticipated budget next week. The wish list, from a survey of 513 clients of middle-market accounting and advisory firm Pitcher Partners, found that 75 per cent of respondents picked funding infrastructure as a top-five budget priority, 60 per cent selected making the tax system simpler and 59 per cent nominated balancing the budget. The figures come as the Commonwealth Bank of Australia (CBA) prepares to drop "financial indicator covenants" from all of its existing and new lending contracts for small businesses borrowing less than $3 million. In good news for small business, the move is expected to give customers more certainty and control so they could avoid defaulting on their small business loans. According to the CBA, the changes could benefit 95 per cent of its small business customers, adding that the bank had around 600,000 business customers, most of which were small to medium enterprises. The financial indicator covenant clauses will remain in contracts for specialised finance transactions such as margin lending, foreign currency loans, SMSF financing and property development. According to sources, banks are also pushing through additional measures that will help protect small business as part of a package of reform designed to lift ethical standards in the sector and relieve political pressure. For example, the Australian Bankers' Association is coordinating an industry response to the Khoury report on the Code of Banking Practice, which will include a new dedicated section for small businesses and a commitment by banks to simplify terms and conditions and give more notice when loan contracts change. Other measures include simplifying the external dispute resolution system to create a "one-stop-shop" model allowing more small businesses to have complaints heard without going to courts; improving complaints handling processes; appointing dedicated customer advocates; and supporting a national approach to farm debt mediation.  

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Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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