Peta Muller reported this story 9 November 2009.
Companies seeking relief via the ATO’s tax payments deferral scheme may be shooting themselves in the foot according to Interlease Director Gary Wilkie.
Companies seeking relief from tax payable commitments are finding the ATO offer to defer payments extremely useful in easing the financial burdens.
Whilst this is good news from a cash flow perspective, Mr Wilkie warns that banks and financial institutions do not view companies making use of this program in a positive light.
"Companies, and their accountants, need to be aware that banks and finance companies take a very dim view of companies seeking funding that are unable to pay their tax obligations on time," he said.
Companies considering the tax deferral tool need to be fully aware of the financial consequences incurred by doing so.
“Once a company has gone down the path of deferring their tax debt, they are effectively warning their financiers that they are having cash flow difficulties,” Mr Wilkie said.
According to Mr Wilkie, banks, in particular, are more than likely to deny funding to any company that has recorded a tax debt on their balance sheet.
“A non-payment of tax will make it necessary for companies to provide, projections, cash flows and full disclosure of the problem when applying for extra funding for the next three to four years”, he said.
Whilst tax payment deferrals could be seen as a blessing to the company, once it is recorded on the balance sheet, it can remain on the company’s records for years.
“This may be the sole reason why a funding facility is not approved,” said Mr Wilkie.
Interlease strongly advises that companies need to realise that deferring tax liabilities can detrimentally affect their credit rating, which impacts capability to obtain funding in the future.
"Making an arrangement with the ATO should only be considered as a last resort in full knowledge that future funding may be compromised,” said Mr Wilkie.
Peta Muller reported this story 9 November 2009.
Online shoppers are going ballistic in the lead-up to Christmas with US retail giant 1saleaday opening its doors for business in Australia.
Tens of thousands of Australian shoppers have already snapped up bargains within only weeks of 1saleaday launching with prices averaging to 90% below retail.
23 year old Melbourne entrepreneurs Simon Mochkin and Eli Feiglin brought the retail giant to Australia under a partnership deal.
“1saleaday is a massive business in the US, and now all Australians can leverage our huge buying power to access unbelievable deals on a daily basis," said Mr Mochkin.
"We're not only giving the best prices to the Americans but now Australians can access them as well," he said.
With the leadup to Christmas, bargain hunters are jumping at the chance to take advantage of the website’s one product a day deal, advertised every 24 hours.
"We're getting tens of thousands of unique visitors a day after just a short time and selling thousands of products daily,” said Mr Mochkin.
1saleaday not only provides a variety of products at heavily discounted prices, but also thrives on product giveaways.
“We're committed to giving out free products, because rather than spending money on marketing we want to give the savings back to our customers,” Mr Mochkin said.
Mr Mochkin believes giving away products provides customers with confidence in the deals and offers advertised on the site, with customers only paying postage and handling costs.
"1saleaday is already becoming a daily shopping experience for thousands of Australians, it becomes so addictive and the bargains are so good that you just want to look at it every day,” he said.
“We're off to a flying start, and the timing could not be better as the high Australian dollar makes our buying power even stronger," he said.
Peta Muller reported this story 9 November 2009.
In spite of the recent global financial crisis (GFC) and subsequent economic slump, cosmetic procedures and treatments are on the increase.
According to Peter Liebhold, chairman of the Smithsonian Institution's work and industry division candy stores are ‘recession proof'.
"During the great depression candy companies stayed in business,” said Mr Liebhold.
The American Society of Plastic Surgeons have recently discovered that despite the recent economic downturn, non-invasive cosmetic procedures such as Botox, dermal (wrinkle) fillers and laser treatments were up as much as 17% in 2008.
When it comes to recession proof industries, botox is on the path to becoming the new candy store of the millenium.
Local business woman Dr Alana Rowick of Vice Aesthetics in Claremont believes this is simply because like chocolate, looking good makes you feel good.
"When you look great you have more confidence - most of my clients are looking for a boost and Botox and dermal fillers provide that almost instantly,” she said.
Whether it’s patients looking to eliminate signs of stress from tough economic times or because procedures are gaining popularity through celebrity exposure, Dr Rowick admits business has increased since the onset of the GFC.
"The local job market has definitely changed and perhaps the increase is a reflection of this [because] looking good and feeling confident definitely provides you with a competitive edge," she said.
Increased usage and demand is likely attributed to Botox and dermal fillers being reasonably inexpensive and there is little or no recovery involved.
Major cosmetic surgeries including facelifts can cost over $20,000 whereas procedures such as Botox can range between $230 and $800 per treatment with little or no recovery.
“Botox in particular is relatively painless and takes only 15-20 minutes, therefore you can have a treatment in your lunch break and return to work with a fresh new look," said Dr Rowick.
Peta Muller reported this story 9 November 2009.
The Australian Government’s goal to develop Australia as a regional financial services hub looks set to become a reality thanks to the Financial Development Report 2009 released by the World Economic Forum (WEF).
The Report has ranked Australia second amongst the world’s financial centres moving ahead of the United States, Singapore and Hong Kong.
According to the report’s Financial Development Index, Australia has ranked number one for financial access and rated highly in banking and non banking financial services.
Financial Services Minister, Chris Bowen confirmed that the report has boosted Australia’s profile as a leading financial services power.
"This report highlights what has been a remarkable performance for Australia's financial services sector and gives the nation well-deserved global recognition," said Mr Bowen.
"This is testament to the strength of our financial system; our solid financial skills base and well-run financial institutions; our system of prudential regulation, and proactive regulators,” he said.
Just as important to ensuring Australia’s financial system is fully sustainable and able to survive future downturns, is the skilling up of workers and creating well-remunerated jobs.
It’s important to ensure that unemployment rates remain at a low, and in order to achieve that it’s important to educate and train workers which will continue to strengthen the Australian economy.
The report confirms the potency of the Australian financial services sector in spite of the global financial crisis.
Mr Bowen warned that whilst the report provided an opportune sign to Australia’s improving performance, there is still a great deal to be done and that Australia cannot yet rest on its laurels.
“The upcoming report from the Australian Financial Centre Forum will provide another opportunity for the Government to examine options to remove any remaining obstacles to Australia becoming a financial services hub for the Asia Pacific," he said.
