Canberra Lays Down The Laws For Concessions

The Australian:

THE federal Government is doing a spring clean-out to rekindle its relationship with small business, but surprisingly, one reform could create a $29 billion black hole.

At worst, it could create a cash crisis for some small businesses.

In recent weeks, the Howard Government has tweaked the rules for small businesses accessing benefits from the simplified tax system and other concessionary programs for small operators.

It has also, this week, flagged that it has received recommendations from the Review of the Disclosure Provisions of the Franchising Code of Conduct.

“The Government has received an excellent review, which represents the combined efforts of the industry to make quality submissions as well as the toils of Graeme Matthews, who led the review,” Small Business and Tourism Minister Fran Bailey said.

The recommendations are not public. But given the extra time the Minister allowed for the review, and the surprising avalanche of submissions from people who have participated in franchising, some controversial changes are expected.

These might shock some franchisors, but they are bound to make a generally good industry, with a few black spots, better.

“The Franchising Code of Conduct has provided certainty and transparency for many thousands of small-business franchises which, in turn, has helped to underpin a booming franchising sector,” Ms Bailey said. “But I believe there are enhancements of the code that can be made to ensure the long-term sustainability of the franchising sector.