MYOB tells Canberra that Cash is Dead

MYOB says the future will be cashless and encouraged the Federal Government to plan for an Australian economy featuring alternative currencies such as Bitcoin.

This morning Tim Reed CEO of MYOB highlighted the opportunity to the House of Representatives in the current inquiry into Taxpayer Engagement with the Taxation System.

“We have long argued in support of a shift to a cashless society. This shift would eliminate the black economy, meaning tax revenues to the government would increase and all businesses would be placed on a level playing field. We encourage the Government to consider the positive impacts a cashless economy would have on business of all sizes and the economy, placing Australia back on the map of global competitiveness,” explained Tim Reed.

The inquiry is reporting on how taxpayers - particularly individuals and small businesses - engage with Australia's tax system, examining opportunities to improve the experience through the greater use of information technology, automated and natural systems.

Representing MYOB’s 1.2 million business customers in Australian and New Zealand, and a network of over 40,000 accountants, bookkeepers and other professional partners, Mr Reed said the public hearing was a significant opportunity for industry, business and government to discuss how they can collectively improve the taxpayer experience in Australia.

Mr Reed spoke of some of the key issues impacting small businesses across Australia including:

• A cashless economy will save small businesses money and time.
• Digital transactions provide more transparency and should not be seen as a threat, but rather an opportunity. The Federal Government should be planning for a world where regulation of global cryptocurrencies is the norm.
• The Federal Government has an important role to play in creating a regulatory environment that supports an open, inter-operable platform that enables automation between the sector and the tax system.
• A collaborative, phased approach is required between Government, Regulators and Providers to create an open inter-operable platform that helps Australian businesses succeed.
• The Australian Tax Office is moving in a positive direction by providing access via APIs to increase automation and efficiencies in the sector.

Mr Reed spoke of a future where cash will be replaced by other digital transactions in the Australian economy. He described the positive role this could play for both businesses and individuals.

“If we were re-designing the economy overall, you wouldn’t design it with cash or paper documents. They are dead. The technology is available today for both businesses and individuals to go cashless. 

"We know switching to cashless saves businesses time and money. Capabilities such as the New Payments Platform (NPP) will allow individuals to send money to anyone, at any time, with a mobile phone number creating convenience and ease,” said Mr Reed.

Mr Reed highlighted the important work the ATO is doing to evolve its system to be more efficient and automated. However, he acknowledged the challenges the ATO faces should not be underestimated and continued support is necessary to improve the interaction of systems within Australia’s tax system.

“Industry, business and government all have a role to play to jointly tackle issues which slow businesses down and stop people from bringing their small business idea to life.

“Regulation can be powerful in enhancing business efficiency. For example, SuperStream has materially reduced the amount of time that is takes an employer to do super each quarter.

Regulation forced that changed and it has been extremely beneficial,” said Mr Reed.

“We were pleased to be a part of the conversation on this issue, and are encouraged by the enthusiasm to create an environment where small businesses are free from complicated compliance systems, and new businesses are set up for success.”

“The Australian Government should set a goal to be a digital leader. Australia should be a digital nation. This will require investment, but it will pay off for the country as a whole.

“Digital transformation is a challenge that requires a phased, collaborative approach to ensure we

can create solutions which enable entrepreneurship and innovation to thrive in Australia.”

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For further comment or other information please contact:
Amy Kirkwood, Australia PR & Corporate Communications Manager, MYOB M: 61 427 822 088 / E: amy.kirkwood@myob.com

Georgia Colahan, Ogilvy PR
M: 61 432 882 080 / E: Georgia@howorth.com.au

About MYOB
MYOB Group Ltd (ASX: MYO) is a leading provider of online business management solutions. MYOB makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB operates across four strategic segments – Small to Medium sized businesses (SMEs), Practices (accountants, advisers and bookkeepers), Enterprise (larger businesses) and Payments. It provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. MYOB is committed to ongoing innovation and delivering efficiencies and growth opportunities for its growing client base across Australia and New Zealand. For more information, visit http://investors.myob.com.au/Investors or follow @MYOB on Twitter.